Effective April 5, 2010 HAMP and HAFA government programs become available.

They are designed to assist the homeowner to either stay in their home or sell it. Both of these programs are only available for homeowners who have participating lenders. 

(There has been some confusion as to whether Fannie Mae or Freddie Mac either had to hold the loan or not hold the loan.  Right now the information obtained by calling the program's hotline indicates it does not matter. Please note however, if neither Fannie Mae or Freddie Mac own your loan the investor who holds your note may decline to participate in the program even if their servicer participates.)

To find out if your loan is held by Fannie or Freddie go here.

HAMP is the Home Affordable Modifications Program. (Loan Modifications)

It is the starting point for requesting a loan modification.  It is also the starting point for requesting a short sale. Said another way servicers (lenders) must evaluate for HAMP prior to any consideration for HAFA (the short sale program).

For more detail on HAMP please go here.

HAFA is the Home Affordable Foreclosure Alternatives program. (Short Sales)

Servicers (lenders) must consider possible HAMP eligible borrowers for HAFA within 30 calendar days of the date the borrower does not qualify for a trial period plan, does not successfully complete a trial period plan or requests a short sale.

For more detail on HAFA please go here.