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UPDATE: Understanding HAFA - Home Affordable Foreclosures Alternatives Program

By
Real Estate Agent with Calling Boise Home AB45481

Update

Update:  Understanding HAFA - Home Affordable Foreclosures Alternatives Program

What is HAFA?

HAFA, Home Affordable Foreclosure Alternatives.  This program is for those homeowners that did not qualify for the HAMP - Home Affordable Modification program.  This program is designed to expedite short sales and to avoid foreclosure.

How can HAFA help you?

HAFA can potentially save you a lot of grief and heartache by creating standardized processes and setting limits on how long a lender can wait to respond to your short sale requests.  Currently, short sales can be lengthy transactions, making it difficult for potential buyers of your home to remain in the process.  The HAFA program required participating lenders to determine what they are willing to accept before dealing with a short sale request - essentially they are pre-approving the sale.  HAFA also benefits the  homeowners by stopping a lenders ability to pursue a deficiency judgment after a short sale or deed-in-lieu has been completed. AND, you may also qualify to receive a $3,000 incentive upon completing a short sale!

Do you qualify?

In order to qualify you must meet the initial program criteria:

  1. You must be delinquent on your mortgage or face immediate risk of default.
  2. You must occupy the property as your primary residence.
  3. Your mortgage must have originated on or before January 1, 2009.
  4. You must have an unpaid principle balance of no greater than $729,750 and have total monthly payments exceeding 31% of your gross income.
  5. Your loan must be guaranteed by Fannie Mae or Freddie Mac.  If you aren't sure if your loan is, you can look up your loan on the Making Home Affordable Website.

This program only applies to first lien mortgage loans but there are other lender incentives to assist homeowners who have multiple mortgages on their property.

Why are lenders participating?

Because with this program, lenders can't charge homeowners any processing fees or out of pocket expenses, so HAFA offers lenders an incentive of up to $6,000 for a successfully processed short sale or deed-in-lieu. Lenders are also participating because typically a short sale nets the bank more money than with a foreclosure. 

Which lenders are participating?

Many!  Generally speaking, lenders who are participating in the HAMP are also participating in the HAFA.  For a complete list of participating lenders visit the Making Home Affordable Website.

For more information on the HAFA program you can visit my website now.

Remember that today 1 in 6 homeowners are behind in their mortgage payments, if you are one of them in trouble, you are not alone!

If you or someone you know is in trouble tell them about this post.

 

 

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Comments (4)

C. Lloyd McKenzie
Living Albuquerque - Albuquerque, NM
Living Albuquerque

Debbie,

 

Thanks for providing this information. You have provided a good starting point for all distressed homeowner

Apr 15, 2010 01:05 PM
C. Lloyd McKenzie
Living Albuquerque - Albuquerque, NM
Living Albuquerque

Debbie,

 

Thanks for providing this information. You have provided a good starting point for all distressed homeowner

Apr 15, 2010 01:05 PM
C. Lloyd McKenzie
Living Albuquerque - Albuquerque, NM
Living Albuquerque

Debbie,

 

Thanks for providing this information. You have provided a good starting point for all distressed homeowner

Apr 15, 2010 01:07 PM
C. Lloyd McKenzie
Living Albuquerque - Albuquerque, NM
Living Albuquerque

Debbie,

 

Thanks for providing this information. You have provided a good starting point for all distressed homeowner

Apr 15, 2010 01:07 PM