Definitions and Terms at a Glance
FHA Special Forbearance
An FHA Special Forbearance allows the Homeowner(s) to recover from a hardship through
1.) Reduced or suspended payments, provided the mortgage does not become more than 12 months past due.
2.) Full payments for a period of time that then convert to payments, plus a monthly portion of the arrearage.
3.) Payments, plus a percentage of the arrearage. An FHA Special Forbearance must span a minimum of 4 months, but has no maximum length.
FHA Partial Claim Glance
Bank Owned/Private Investor/Nonprime Deed-in-Lieu
This process allows the property to be voluntarily returned by the homeowner(s). The borrower is expected to go through the Short Sale process prior to entering into the Deed-in-Lieu process. A loan does not have to be past due to be considered. The property must be vacated upon execution of the documents by the borrower. Nonprime loans often have private investors.
FHA - HAMP
An FHA-HAMP allows the use of a Partial Claim for up to 30% of the unpaid principal balance of the existing mortgage, combined with a loan modification. The intent is to reduce the borrower's mortgage payment (PITIA) to 31% of gross monthly income.
FHA Short Sale
An FHA Short Sale, also known as a Pre-Foreclosure Sale, is an approved sale of the property for less than what is owed. A contract/buyer is not necessary for application.
FHA Deed-in-Lieu
An FHA Deed-in-Lieu allows the property to be voluntarily returned by the Homeowner(s). The property must be vacated upon acceptance of the executed Deed-in-Lieu.
VA Repayment Plan
A VA Repayment Plan allows past due payments to be divided and added to current payments in order to bring the loan current over a period of time. This repayment plan has no maximum term length; however, a typical plan is between 6 and 18 months in length.
VA – HAMP
A HAMP allows the past due payments, interest, taxes, and insurance to be capitalized, and allows for the original payments, balance and interest rate to be altered if needed.
VA Forbearance
A VA Forbearance allows the Homeowner(s) to recover from a hardship through reduced of suspended payments, followed by a pre-determined workout or full reinstatement. Forbearances may range from 1 to 12 months.
VA Short Sale
A VA Short Sale or Compromise Sale is an approved sale of the property for less than what is owed.
VA Deed-in-Lieu
A VA Deed-in-Lieu allows the property to be voluntarily returned by the homeowner(s). It is typically asked that the borrower go through the Short Sale process prior to entering into the Deed-in-Lieu process. A loan does not have to be past due to be considered for a Deed-in-Lieu. The property must be vacated upon execution of the documents by the borrower.
FNMA = Fannie Mae
FNMA Repayment Plan
An FNMA Repayment plan allows past due payments to be divided and added to current payments in order to bring the loan current over a pre-defined period of time, typically 3 to 12 months.
FNMA Forbearance
A FNMA Forbearance allows for a period of reduced or suspended payments followed by a pre-determined additional workout or full reinstatement. FNMA has no minimum or maximum time frame for a Forbearance.
FNMA HomeSaver Advance
HomeSaver Advance (HAS) is an unsecured personal loan that is designed to bring a delinquent loan current and is payable over 15 years at a fixed rate of 5%. No payments will be required nor will interest accrue during the first 6 months.
FNMA Modification
A FNMA Modification (MOD) allows the past due payments, interest, taxes, and insurance to be capitalized and for the original payments, balance, and interest rate to be altered.
FNMA Short Sale
A FNMA Shore Sale, also known as a Pre-Foreclosure Sale, is an approved sale of the property for less than what is owed.
FNMA Deed-in-Lieu
A FNMA Deed-in Lieu (DIL) allows the property to be voluntarily returned by the Homeowner(s). This workout is offered only when a borrower has an extreme hardship (e.g. death, serious illness).
FHLMC = Freddie Mac
FHLMC Forbearance
A FHLMC Forbearance allows the Homeowner(s) to recover from a hardship through reduced or suspended payments, followed by a pre-determined workout or full reinstatement. Forbearances may arrange from 2 to 12 months.
FHLMC Repayment Plan
A FHLMC repayment plan allows past due payments to be divided and added to current payments in order to bring the loan current over a period of time. FHLMC has no minimum or maximum time frame for a repayment plan.
FHLMC Modification
A FHLMC Modification allows the past due payments, interest, taxes, and insurance to be capitalized and for the original payments, balance and interest rat to be altered.
FMLMC Deed in Lieu
A FHLMC Deed In Lieu (DIL) allows the property to be voluntarily returned by the Homeowner(s).
Making Home Affordable Program Modification
The goal of the Making Home Affordable Program modification program (Home Affordable Modification Program or “HAMP” or “HMP”) is to reduce the homeowner’s monthly mortgage payment. Available modification options include extending the life of the loan, reducing the interest rate or principle forbearance.
Making Home Affordable Program Refinance
The goal of the Making Home Affordable Program Refinance is to reduce the homeowner’s monthly mortgage payment to a level they can afford and sustain for the long-term.
Making Home Affordable Second Lien Program (2MP)
The Making Home Affordable Second Lien Program (2MP) is a complementary program to the first lien modification program. It will create a sustainable and affordable mortgage payment for those who qualify for a first mortgage modification yet still face challenges in affording their monthly payment because of a second mortgage.
Making Home Affordable Home Affordable Foreclosure Alternatives (HAFA)
The Making Home Affordable Home Affordable Foreclosure Alternative (HAFA) is part of HAMP and provided financial incentives to servicers and borrowers who utilize a short sale or a deed in lieu to avoid foreclosure on an eligible loan under HAMP.
Bank Owned/Private Investor/Nonprime Special Forbearance
A Bank Owned/Private Investor/Nonprime Special Forbearance allows the Homeowner(s) to recover from a hardship through reduced or suspended payments, followed by predetermined workout or full reinstatement. Nonprime loans often have private investors.
Bank Owned/Private Investor/Nonprime Repayment Plan
A Bank Owned/Private Investor/Nonprime Repayment Plan allows past due payment to be divided and added to current payments in order to bring the loan current over a period of time (typically between 3 and 24 months). Nonprime loans often have private investors.
Bank owned/Private Investor/Nonprime Modification
A Bank Owned/Private Investor/Nonprime Modification (MOD) allows the past due payments, interest, taxes and insurance to be capitalized and for the original payments, balance and interest rate to be altered. Nonprime loans often have private investors.
Bank Owned/Private Investor/Nonprime Short Refinance
A Bank Owned/Private Investor/Nonprime Short Refinance is an approved refinance of the property for less than what is owed. Nonprime loans often have private investors.
Bank Owned/Private Investor/Nonprime Short Sale
A Bank Owned/Private Investor/Nonprime Short Sale is an approved sale of the property for less than what is owned. Nonprime loans often have private investors.
