How HAFA Can Help Financially Challenged Homeowners with no Cost to Homeowner
This past November, the Treasury Department set guidelines, with no cost to Homeowner, for its new Home Affordable Foreclosure Alternatives Program (HAFA), these guidelines are set to help homeowners who are unable to afford their home under the Home Affordable Modification Program (HAMP). Under HAFA, homeowners may be able to avoid foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL). If you or someone you know is having trouble making mortgage payments, understanding this new government program is essential.
Having consulted and helped many clients faced with a distressed property situation. The good news is HAFA is designed to simplify and streamline the use of short sales and deeds-in-lieu of foreclosure by improving the process all at no cost to you. Here's how:
· Help homeowners who are HAMP eligible but nevertheless unable to keep their home
· Use financial and hardship information already collected in connection with consideration of a loan modification
· Allow borrowers to receive pre-approved short sales terms before listing the property
· Require borrowers to be fully released from future liability for the first mortgage debt and if the subordinate lien holder receives an incentive under HAFA, that debt as well