subject: Foreclosure Prevention. Distressed Homeowners use HAFA [print this page] Foreclosure PreventionForeclosure Prevention. Distressed Homeowners use HAFA
With the new Home Affordable Foreclosure Alternatives Program, or HAFA, you may be eligible for a $3,000 incentive to avoid foreclosure by pursuing a short sale or deed-in-lieu.
The first part of assessing someones current mortgage situation involves seeing whether they can modify their loan and lower payments to an affordable level. This route does work for some, but an important thing to understand is that mortgage modifications almost never lower the principle amount owed on the loan, only the interest.
This means that a mortgage modification will only help those homeowners who are just out of reach of making their payments, which is unfortunately not the case for most distressed homeowners. With a financial hardship as impactful as a job loss or a major drop in financial assets, tweaking the interest rate on your loan is usually not enough to make the mortgage affordable.
If we find that you are in a situation that would benefit from a mortgage modification, I can show you the best way to pursue this route. If not, then a short sale may be your best option, and HAFA makes that option even more appealing.
almost always loses more money in a foreclosure than in a short sale or deed-in-lieu. If a lender is convinced that a homeowner has no way of paying the current mortgage, they will be concerned with salvaging as much of their investment as possible, so short sales are generally the best option for them as well.
If your lender is participating in HAFA, there is a set of criteria you must meet to be eligible for the program. To find out your eligibility and lenders participation, please contact me.
As a CDPE-designated agent, I have been trained in the full range of options available to distressed homeowners. I can assess your situation, help you figure out your best options and help you move towards a solution.
I have invested myself in helping homeowners who are struggling with mortgage payments because I understand the unusually challenging times we are in, and Im ready to help as many people as I possibly can.
