In support of President Obama's Making Home Affordable Program, FannieMae and Freddie Mac offers two options to help you keep your home:

• Home Affordable Refinance: This option can help you refinance into a more affordable mortgage if you're paying your mortgage on time but you're unable to refinance to a lower rate because you owe more on your mortgage than your home is currently worth.
• Home Affordable Modification: This option can help you get mortgage payments you can afford if you're delinquent in making your monthly mortgage payments, in the foreclosure process, or current on your payments but have recently experienced hardship and you are about to miss a payment.

Home Affordable Refinance Program:                                              

If you're current on your mortgage payments but unable to refinance because you owe more on your mortgage than your home is currently worth, you may be able to refinance to a lower or more stable rate through a Home Affordable Refinance, part of the federal Making Home Affordable program.

A Home Affordable Refinance can help you obtain a monthly payment you can afford, and result in one of the following:

• A reduction in your interest rate
• A fixed-rate mortgage in place of an adjustable-rate, interest-only or balloon/reset mortgage
• A reduction in the term of your mortgage (i.e., from 40 years to 30 years)

How Can I Qualify?

If your mortgage is owned by FannieMae or Freddie Mac, you may be able to obtain a refinance through this program if:

• You are current on your mortgage payments (and you haven't been over 30 days late with a mortgage payment in the past 12 months)
• Your current mortgage is at least three months old
• Your first mortgage is less than or equal to 125 percent of the current market value of your home

You may be eligible for a Home Affordable Refinance if the property you're trying to refinance is:

• One-to-four units, and you're currently living in one of the units as your primary residence
• A one unit second home, such as a vacation home
• A one-to-four unit investment property

The Home Affordable Refinance has more favorable Underwriting Guidelines

• Loan must be owned by FannieMae or FreddieMac
• Ratios determined by Automated Underwriting System ("DU")
• No Reserves required (assets in DU must be verified)
• Up to 125% LTV on all occupancy types
• No limit on the number of properties owned
• Appraisal determined by DU (Prop. Fieldwork Waiver allowed with restrictions)
• Credit score determined by DU
• Condo's allowed - No condo approval required
• Documentation determined by DU with a minimum of:
• Salaried: One pay stub and a Verbal VOE
• Commissioned or Self-employed: Most recent tax return and Verbal VOE

Home Affordable Modification Program:                                                               

The Home Affordable Modification Program (HAMP), a component of the Making Home Affordable Program, is a uniform loan modification process that provides eligible borrowers with sustainable monthly mortgage payments equal to a target 31 percent of their gross monthly income.  SureFast Mortgage provides a negotiating service on behalf of the borrower that is reimbused by the Servicer.

Borrower and Loan Eligibility

Eligibility criteria highlights include:

• Mortgage loan is secured by a one- to four-unit property, one of which is the owner's principal residence (condos, coops and manufactured homes that are permanently affixed to real property also eligible)
• Jumbo-conforming loans eligible
• Documented financial hardship (e.g., job loss, divorce or separation, reduced income-use "Home Affordable Modification Program Hardship Affidavit," Form 1021)
• Borrower in default, at risk of imminent default, or in foreclosure-loan may be in active litigation or, at servicer's discretion, in bankruptcy
• Loans originated on or prior to January 1, 2009
• Escrow account required for taxes and insurance
• Excludes mortgage loans insured or guaranteed by a federal government agency and loans subject to full lender recourse
• Program closes to new participants December 31, 2012

Servicer Requirements

• Required participation for all eligible Fannie Mae portfolio mortgages and MBS pool mortgages.
• Servicers are prohibited from soliciting borrowers who are less than two payments past due, including borrowers in imminent default.  However, if a borrower in this situation contacts a servicer, the servicer may consider the HAMP as a loss mitigation option.
• Must use a two-step workout process that first provides a three-month "trial period" (four months for loans facing imminent default).  If the trial period is successfully completed, the loan will be modified. Separate agreements are required-a Trial Period Plan for the trial period and a Modification Agreement for the permanent loan modification.
• Servicers are strongly encouraged to use HAMP borrower solicitation materials and documents found on eFannieMae.com.  Servicers may revise materials and documents within specified parameters.  Other changes must have prior written approval of Fannie Mae.

Incentive Fees

• $1,000 servicing incentive fee paid to servicer for each borrower who successfully completes the trial period and executes a Modification Agreement.
• Additional $500 servicing incentive fee if borrower was current but facing imminent default at the time of the modification.
• Up to $1,000 annual "pay for success" servicer incentive fee for up to three years for each borrower who remains in the program for that year.
• Under certain conditions, borrowers can receive an annual principal reduction of up to $1,000 for up to five years. 

Costs

• No cost to the borrower.
• All late charges that accrued prior to modification must be waived if the borrower successfully completes the trial period.  Accrued interest and out-of-pocket escrow and other advances to third parties made by servicer in the ordinary course of business (and not retained by the servicer) before or during the trial period can be capitalized.
• Servicer must advance any actual out-of-pocket expenses such as notary fees, recordation fees, property valuation fees, borrower counseling fees, or other allowable and documented expenses and be reimbursed later for allowable out-of-pocket expenses.