The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) has created consumer information sheets detailing the various mortgage modification programs available through the larger lenders and government entities, and also has created an easy-to-use reference chart about available programs.

· The consumer sheets contain information such as eligibility requirements; who to contact to apply; costs associated with the program; and other vital data. In general, the loan modification programs on the chart and consumer information sheets are intended for primary residences only.

· Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available: loan number; income information and documentation; most recent mortgage statement; bank statements; and a letter demonstrating financial hardship.

LENDER/PROGRAM	PROGRAM SNAPSHOT	ELIGIBILITY REQUIREMENTS	STEPS/PROCESS/ TIMELINE	CONTACT/MORE INFO
Hope For Homeowners (H4H)	Designed for borrowers at risk of default and foreclosure. Provides new 30-year, fixed-rate mortgages insured by FHA, mostly via refinance. Lender must willingly participate.	l  Loans originated on or before Jan. 1, 2008. l  Primary residence, owner occupied (Borrower may not own a second home). l  Unable to pay existing mortgage without assistance and has made at least six payments. l  Current total monthly mortgage payments exceed 31 percent of gross monthly income as of March 2008. l  Homeowner has not been convicted of fraud in the last 10 years and did not knowingly or willingly provide false information to obtain existing mortgage.	Contact your lender to check for participation in H4H program Need to apply through participating lenders Program timeline Oct. 1, 2008 – Sept. 30, 2011	For a list of participating lenders visit the site below. www.fha.gov
LENDER/PROGRAM	PROGRAM SNAPSHOT	ELIGIBILITY REQUIREMENTS	STEPS/PROCESS/ TIMELINE	CONTACT/MORE INFO
Countrywide Financial (Bank of America )	Homeownership Retention Program for Countrywide Customers Will modify troubled mortgages with interest rate and principle reductions.	l  Subprime or pay option adjusted-rate mortgage loans originated on or before Dec. 31, 2007. l  Primary residence, owner occupied (one to four units) l  Borrower is 60 days or more delinquent and current loan-to-value is 75 percent or greater. l  Borrower is current today but becomes 60 days or more delinquent at any time before June 30, 2012, and loan-to-value is 75 percent or greater at the time of the modification. l  Modifications would be designed to achieve sustainable payments at a 34 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.	Call BofA/Countrywide to check for eligibility Program timeline Begins Dec. 1, 2008 with no end date specified.	Call (800) 669-6650 http://my.countrywide.co m/media/FinancialAssist anceEN.html

LENDER/PROGRAM	PROGRAM SNAPSHOT	ELIGIBILITY REQUIREMENTS	STEPS/PROCESS/ TIMELINE	CONTACT/MORE INFO
Citigroup, CitiMortgage	Citi Homeowner Assistance Program Will preemptively reach out to homeowners in need of assistance and will not initiate a foreclosure or complete a foreclosure sale on any eligible borrower where Citi owns the mortgage.	l  No requirements on origination. l  Must be first mortgage and must be a loan Citi owns. l  Primary residence, owner occupied (owner may own a second home). l  Borrower is working in good faith with Citi. l  Borrower may not be currently behind on their payments but may require help to stay current. l  Current total monthly mortgage payments exceed 38 percent of gross monthly income.	Call Citibank to check for eligibility Program timeline Nov. 11, 2008 – May 2009	(800) 667-8424 www.mortgagehelp.citi. com
LENDER/PROGRAM	PROGRAM SNAPSHOT	ELIGIBILITY REQUIREMENTS	STEPS/PROCESS/ TIMELINE	CONTACT/MORE INFO
JPMorgan Chase & Co.	Chase’s mortgage modification program includes extending modification programs to Washington Mutual and EMC Mortgage Corp. customers. Program is designed to actively contact borrowers and work with them to develop viable and sustainable options.	l  No requirements on origination. l  Must be first mortgage and must be a loan JP Morgan Chase owns. l  Primary residence, owner occupied (owner may own a second home). l  Targets Chase , Washington Mutual or EMC Mortgage Corp., borrowers with adjustable-rate mortgages (ARMs) including subprime and pay-option ARMs. l  Modifications would be designed to achieve sustainable payments at 31 to 40 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.	Call Chase to check for eligibility Program Timeline Chase expects to implement by Jan. 31, 2009 and will extend two years after implementation.	For help with Chase, WAMU or EMC loan, call (866) 550-5705 www.chase.com

LENDER/PROGRAM	PROGRAM SNAPSHOT	ELIGIBILITY REQUIREMENTS	STEPS/PROCESS/ TIMELINE	CONTACT/MORE INFO
IndyMac Federal Bank, FDIC	Program to modify troubled mortgages to achieve affordable and sustainable mortgage payments for borrowers, and increase the value of distressed mortgages by rehabilitating them into performing loans.	l  No requirements on origination. l  Must be a first mortgage and must be a loan owned, or securitized and serviced, by IndyMac Federal l  Primary residence, owner occupied l  IndyMac borrower already seriously delinquent or in default. l  IndyMac borrowers at risk of default due to payment resets or changes in the borrowers’ repayment capacities. l  Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.	Call an IndyMac Federal customer service specialist to check for eligibility. Program Timeline Aug. 2008 – no end date specified.	Call (877) 908-4357 http://www.fdic.gov http://www.indymac.com/ default.aspx?id=1178
LENDER/PROGRAM	PROGRAM SNAPSHOT	ELIGIBILITY REQUIREMENTS	STEPS/PROCESS/ TIMELINE	CONTACT/MORE INFO
Federal Government Loan Modification Fannie Mae, Freddie Mac, Federal Home Loan Banks, Hope Now participants, Department of the Treasury, Federal Housing Administration and the Federal Housing Finance Agency, Wells Fargo	Designed to reduce preventable foreclosures with a simplified, streamlined loan modification program to put struggling homeowners into mortgages they can afford via a uniform process for loan modifications that the majority of lenders and servicers will use.	l  Borrower must have missed three or more payments. l  Primary residence, owner occupied l  Not filed for bankruptcy. l  Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, and association dues.	Troubled homeowners should call with their lenders or servicers as to participation and eligibility for this new program. Program Timeline Dec. 15, 2008, more details to follow.	www.fhfa.gov http://www.hopenow.com /loan_services/servicer_ Directory.php

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  Wall Street Journal

What if you don’t qualify?
The majority of the mortgage modification programs from the larger lenders only are available to homeowners who either already are in default or are at risk of defaulting on their primary residences. However, some homeowners, in particular those who may default on a vacation home or an investment property, have some options available.

· Homeowners who are in default or at-risk of defaulting should contact a reputable credit counseling agency to discuss possible options other than foreclosure. When calling a credit counseling agency, the homeowner should have their loan number, most recent mortgage statement, bank statements and a letter demonstrating financial hardship. To find a credit counselor, visit the U.S. Dept. of Housing and Urban Development’s (HUD) Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA or the non-profit organization National Foundation for Credit Counseling at http://www.nfcc.org/.

· Homeowners should contact their loan servicer as soon as possible to try to work out potential solutions. According to the Federal Housing Finance Agency (FHFA), some borrowers who do not meet the requirements for an existing mortgage modification program may still be considered for a loan adjustment based on personal circumstances.

· If a mortgage modification is not possible, homeowners may want to consider a short sale -- sell the home for less than the amount of the mortgage. Although a short sale enables a homeowner to avoid foreclosure and often causes less damage to the homeowner’s credit score than a foreclosure, the lender must agree to accept the loss and in some cases the homeowner may have to pay taxes on the difference. Also, many lenders are overwhelmed by the large number of short sales being submitted by homeowners, so it could take longer than usual to receive a short-sale acceptance from the lender.

· If a homeowner cannot qualify for a mortgage modification or a short sale, some lenders will consider a deed in lieu of foreclosure, where the homeowner transfers the title to the lender in exchange for debt forgiveness. Properties that have additional debt, such as home equity lines of credit or additional mortgages, may not qualify for a deed in lieu of foreclosure. Homeowners who have additional debt tied to the property must share this information with their lender for consideration when applying for a short sale.

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