If you make timely payments on your modified loan, you will receive "success incentives". If you pay on time every month, you will accrue an incentive that reduces the principal balance on your loan. If it ceases to be in good standing (i.e. three monthly payments due are unpaid on the last day of the third month) no further success incentives will be paid including those accrued by unpaid amounts. $1,000 will be applied directly to your loan balance annually. Over five years, the total principal reduction could add up to $5,000!

Below is a list of foreclosure prevention options which are designed to help financially troubled homeowners who no longer can afford to keep their home.

Home Affordable Foreclosure Alternatives (HAFA)

Designed to help qualified homeowners transition to more affordable housing by streamlining the Short Sale and Deed-in-Lieu options as well as providing $3,000 in relocation assistance;

- Must not have qualified for a mortgage modification through any   of the Making Home Affordable Programs
- Or must have failed to successfully complete the trial period of a   previous loan modification
- Or must have missed at least two consecutive payments once in a   permanent modification
- Or must have requested a short sale or deed-in-lieu of   foreclosure

Short Sale

Stop foreclosure by selling your home for less than the balance remained on the mortgage and paying off the balance with the proceeds;

- May be able to apply for a new mortgage in as little as 2 years
- Less impact on credit score than a foreclosure

Deed-in-Lieu

Stop foreclosure by willingly surrendering the property to the mortgage servicer;

- May be able to apply for a new mortgage in as little as 2 years
- Less impact on credit score than a foreclosure