You have questions and we have answers. We understand that terms like HARP, HAMP and HAFA are confusing, so we created this Mortgage Industry Terms for you to get informed. Below you will find simple definitions for some of the most commonly used terms in the mortgage industry.
Please click on a term to expand more information about it.
Only licensed mortgage originators can generate a refinance … A NEW LOAN
HARP 2.0 is available for homeowners who are struggling but current and making mortgage payments on time. Refinancing may reduce the monthly mortgage payment by reducing the interest rate, and/or may change mortgage from adjustable to fixed rate.
NO LAW FIRM CAN ORIGINATE HARP 2.0 LOANS WITHOUT A LENDING LICENSE
If approved, lender may reduce interest rate, and/or payment, extend the term, and fix the rate.
Government modifications require a minimum three (3) month trial period prior to permanent modification.
- Loan originated before
January 1, 2009
- Presence of MHA
- Owner Occupied & N/O/O
- Principle balance cannot
- Borrower unemployed currently
or in the last 12 months
- 6 to 18 month Forbearance
- During Forbearance, lender
required to consider
- Objective is minimum 10%
reduction in existing principle
- DOJ Settlement Fund up to
$100,000.00 P/R per property
- transfer of title to lender
- Sale of property below principal
This option is the most common by an attorney where they will work with the lender to try and settle something fair and reasonable for both parties outside of court.
This is the next step after mitigation where the attorney fights on your behalf in court.
*70-75% Approval Rate
The Consumer Financial Protection Bureau (CFPB) is an independent federal agency that holds primary responsibility for regulating consumer protection with regard to financial products and services in the United States.
A “judicial” state requires a judicial review of the foreclosure case before it can be officially processed. The foreclosure process actually begins by filing a Lis Pendens (“a lawsuit pending”) document in a court of law. Following are the states that require judicial review: Connecticut, Delaware, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, South Carolina, Vermont.
In “non-judicial” states, lenders or trustees file a Notice of Default with the county recorder’s office to commence the foreclosure process, and the process does not need to go through the courts. These states include Michigan, New Hampshire, Tennessee, Utah, Washington D.C., West Virginia.
The remaining 25 states allow both judicial and non-judicial foreclosure, though some have tendencies toward one practice or the other.