What is HAFA? The Home Affordable Foreclosure Alternatives
What is HAFA? The Home Affordable Foreclosure Alternatives
Everyone has heard about the government's modification program Home Affordable Modification Program "HAMP". The program designed to help struggling homeowners to stay in their homes and reduce their monthly mortgage payments. Question is what if you do not qualify for assistance under the Hamp guidelines or a lenders in house or traditional modification program? What are your options?
The government also has other programs under the Home Affordable Foreclosure Alternative program. These are additional options to possibly avoid foreclosure and offers incentives to both the servicers and investors, but also to the homeowners. HAFA short sale program and or the deed in lieu programs are designed to assist homeowners who may not qualify for the HAMP trial modification, have defaulted on their trial modification or request a short sale and or deed in lieu.
A short sale is listing your home for less than what you may owe on the property. If you have tried selling but cannot do so, you may qualify for a deed in lieu. This means giving the house back to the servicer with the understanding they cannot go after you for a deficiency judgment if it is a short sale and or deed in lieu. As long as the house is free and clear of liens and or other encumbrances.
By qualifying under the Home Affordable Foreclosure Alternative program, it helps to streamline the process and close quicker on short sales and deed in lieu's. For further incentives on these two types of programs you should visit the following: HAMP website.
If you are considering a short sale and or deed in lieu, you should contact your lender as well. Waiting too long can mean the difference between having a foreclosure on your credit report which will hinder you up to 7 years, while a short sale and deed in lieu may only stay on your credit for up to 3 years. Make the call today and start rebuilding for a better tomorrow.