subject: Home Owners Can Prevent Foreclosure With Hafa Short Sale [print this page] If you are facing foreclosure of your property due to any outstanding mortgage or credit debt, you need not be disheartened. With the new Home Affordable Foreclosure Alternatives Program which is also known in short as HAFA, you can be eligible for a $3000 incentive so that you can avoid the foreclosure with the hafa short sale or deed in lieu.
The basic and the foremost part of assessing your present mortgage balance and the difficult financial situation that you are in due to debt involves checking whether you are able to modify your loan to make payments at lower amounts that are affordable to you. This process does work for some people. But you must understand something really important that any kind of modification in mortgage will only lower the amount of interest. It will certainly not lower the principle amount at any cost.
It simply means that any kind of modification in mortgage will only help people who are just completely unable to make the payments of their mortgage. But that circumstance is not true for all the home owners always. If there is a financial hardship that you are facing, it is not similar to a job loss, or loss of financial assets etc and thus lowering the rate of interest will not make the mortgage payment affordable at all.
If the HAFA association finds that you as a home owner is facing such a situation that will be of benefit to you if the mortgage is modified, then there are ways to pursue the HAFA sale. In case that is not the circumstance, you can also opt for other kind of foreclosure help.
Home owners always lose out on more money in a foreclosure than that in a short sale or in cdpe short sales. The reason is simple, when the lending institution is almost convinced of the fact that the home owner is not in a position to repay the current mortgage amount, they will be more interested in retrieving as much of their invested amount as possible. Thus any kind of short sale is best for the lenders as well.
In case your lender is also taking an interest in the hafa sales, there are certain criteria that you must fulfil in order to be eligible for the said program. To find out about the eligibility criteria, you can conduct a thorough research via the internet.
Always remember that a foreclosure of the property is an expensive proposition for the lender too. It is a legal process that also takes the course of law and that too for a long time. Thus any lender would want to avoid such a lengthy legal process. So for them, the short sales are much lucrative option since they will be able to get back most of the amount invested earlier in a short span of time. In case of such a short sale however, both the home owner and the lender must agree on mutual terms and cooperate with each other.
