Jun 20

Written by: MarjTaylor
6/20/2010 1:15 PM

A mortgage loan meets the basic eligibility criteria for HAFA if all of the following are true statements:

• The loan was for the principal residence of the borrower.

• The loan was a first lien mortgage originated on or before January 1, 2009.

• The mortgage is delinquent, or default is reasonably foreseeable.

• The unpaid principal balance on the loan is no more than $729,750 for a single-family property, $934,200 for a dual-unit property, $1,129,250 for a three-unit property, or $1,403,400 for a four-unit property.

• The total monthly payment on the mortgage (including principal, interest, property taxes, hazard and flood insurance, condominium association fees, homeowner’s association fees, and any escrow payment shortage amounts subject to a repayment plan) is more than 31% of the gross income of all borrowers on that mortgage.

• The loan servicer has already considered the borrower for a HAMP loan modification, and one of the following conditions applies:

  • The borrower does not qualify for a Trial Period Plan.
  • The borrower does not successfully complete a Trial Period Plan.
  • The borrower is delinquent on a HAMP modification by missing at least two consecutive payments.
  • The borrower requests a short sale or a deed-in-lieu.

Use of the term “borrower” means all borrowers on the mortgage in question.

HAMP-eligible borrowers must be considered for HAFA within 30 days of either the termination of the HAMP agreement or the request for either a short sale or a deed-in-lieu.

Every potentially eligible borrower must be considered for HAFA before the borrower’s loan is referred to foreclosure or the servicer allows a pending foreclosure sale to be conducted.

Loan servicers retain the right to accept or deny a HAFA application based on external factors, such as the severity of the loss involved, local market conditions, the timing of pending foreclosure actions, and borrower motivation and cooperation.

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