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AVOIDING FORECLOSURE
Information provided by the “U.S. Department of Housing and Urban Development” (HUD)
(See HUD Website below for links to additional information)

The Obama Administration has implemented a number of programs to assist homeowners who are at risk
of foreclosure and otherwise struggling with their monthly mortgage payments. The majority of these
programs are administered through the U.S. Treasury Department and HUD. This page provides a
summary of these various programs. Please continue reading in order to determine which program can
best assist you.

Distressed homeowners are encouraged to contact their lenders and loan servicers directly to inquire about
foreclosure prevention options that are available. If you are experiencing difficulty communicating with your mortgage lender or servicer about your need for mortgage relief,

Making Home Affordable
The Making Home Affordable ? (MHA) Program is a critical part of the Obama Administration’s broad strategy to help homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s
economy.

Homeowners can lower their monthly mortgage payments and get into more stable loans at today’s low rates. And for
those homeowners for whom homeownership is no longer affordable or desirable, the program can provide a way out
which avoids foreclosure. Additionally, in an effort to be responsive to the needs of today’s homeowners, there are
also options for unemployed homeowners and homeowners who owe more than their homes are worth. Please read the
following program summaries to determine which program options may be best suited for your particular circumstances.

Modify or Refinance Your Loan for Lower Payments Home Affordable Modification Program (HAMP):
HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.

Related Information
Avoiding Foreclosure/U.S. Department of Housing and Urban Developm… http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure

Principal Reduction Alternative (PRA):
PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging
servicers and investors to reduce the amount you owe on your home. Click Here for more information.
Second Lien Modification Program (2MP): If your first mortgage was permanently modified under HAMP SM
and you have a second mortgage on the same property, you may be eligible for a modification or
principal reduction on your second mortgage under 2MP. Likewise, If you have a home equity loan, HELOC,
or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn
more about this MHA program.

Home Affordable Refinance Program (HARP):
If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your
home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage.

?Underwater? Mortgages”

In today’s housing market, many homeowners have experienced a decrease in their home’s value. Learn about
these MHA programs to address this concern for homeowners.

Home Affordable Refinance Program (HARP):
If you are current on your mortgage and have been unable to
obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance
through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage.

Principal Reduction Alternative:
PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and
investors to reduce the amount you owe on your home.

Treasury/FHA Second Lien Program (FHA2LP):
If you have a second mortgage and the mortgage servicer of your first mortgage agrees to participate in FHA Short Refinance, you may qualify to have your second mortgage on the same home reduced or eliminated through FHA2LP. If the servicer of your second mortgage agrees to participate, the total amount of your mortgage debt after the refinance cannot exceed 115% of your home?s current value. Click Here for
more information.

Assistance for Unemployed Homeowners

Home Affordable Unemployment Program (UP):
If you are having a tough time making your mortgage payments because you are unemployed, you may be eligible for UP. UP provides a temporary reduction or suspension of mortgage payments for at least twelve months while you seek re-employment.

Emergency Homeowners? Loan Program (EHLP), Substantially Similar States: If you live in Connecticut, Delaware, Idaho, Maryland, or Pennsylvania, Click Here for more information about EHLP assistance
provided in your state.

FHA Forbearance for Unemployed Homeowners:
Federal Housing Administration (FHA) requirements now require servicers to extend the forbearance period
for unemployed homeowners to 12 months. The changes to FHA?s Special Forbearance Program announced in July 2011 require servicers to extend the forbearance period for FHA borrowers who qualify for the program from four months to 12 months and remove upfront hurdles to make it easier for unemployed borrowers to qualify. Click Here for more information.

Managed Exit for Borrowers

Home Affordable Foreclosure Alternatives (HAFA):
If your mortgage payment is unaffordable and you are interested in transitioning to more affordable housing,
you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA SM.

?Redemption? is a period after your home has already been sold at a foreclosure sale when you can still
reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred
during the foreclosure process.

FHA-Insured Mortgages
The Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban
Development (HUD), is working aggressively to halt and reverse the losses represented by foreclosure. Through its

National Servicing Center (NSC), FHA offers a number of various loss mitigation programs and informational
resources to assist FHA-insured homeowners and home equity conversion mortgage (HECM) borrowers facing
financial hardship or unemployment and whose mortgage is either in default or at risk of default.

Click Here to log onto the NSC Loss Mitigation
Programs home page.

Click Here for answers to Frequently Asked Questions about FHA?s loss mitigation programs.

CONTACT FHA
FHA staff are available to help answer your questions and assist you to better understand your options as an FHA
borrower under these loss mitigation programs. There are several ways you can contact FHA for more information,
including:

Call the NSC at (877) 622-8525

Call the FHA Outreach Center at 1-800-CALL FHA (800-225-5342)

Persons with hearing or speech impairments may access this number via TTY by calling the Federal
Information Relay Service at (800) 877-8339.

Email the FHA Resource Center

The Online FHA Resource Center

Tips for Avoiding Foreclosure (brochure)

Click Here to see HUD Website below for links to additional information.