Loan Modification: HOPC will modify loans for all approved homeowners. Homeowners will receive principal forgiveness and HOPC will use its estimated current market value for the new modified loan.

Shared Appreciation Contract: When homeowners fall short of  qualification for the modification, a Shared Appreciation Contract [SAC] will be offered to further reduce loan principal balance.  This will result in a lower monthly payment, which will enable more homeowners to qualify for modification.The modified notes [and SACs if applicable] go to the investors to hold or they can be re-sold on the secondary market. If the property is sold, the investors will get their money back along with their share of the profits from the sale.

Affordable Housing: HOPC will offer properties to non-profit groups to purchase at a discount from the current value for Affordable Housing.

Shared Equity Sales: If the homeowner or the property does not meet nonprofit guidelines for affordable housing, then HOPC will offer the current homeowner a short sales agree ment with shared equity participation

.Foreclosure: If the current homeowner does not qualify for a loan modification or does not meet the guidelines for affordable housing and chooses not to participate in the sale of the property, then HOPC will follow California Homeowner Bill of Rights process and any other State laws and foreclose on the property.