What is HAFA?... HAMP?... Foreclosure?
Vienna Bello, SFR, Realtor® & Notary Public, Liberty Realty, LLC, Hoboken, NJ, 201-725-8102
What is HAFA?
HAFA: Home Affordable Foreclosure Alternative, a government sponsored program that helps individuals and families who are experiencing difficulty in selling their homes. HAFA was initiated on November 30, 2009 by the U.S. Treasury Department under the Obama Administration with the goal of revitalizing the housing market. HAFA complements HAMP as an alternative for eligible borrowers, but does not apply to loans that are affiliated with Fannie Mae or Freddie Mac. In simpler terms, HAFA helps people quickly sell their homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. Although the program was initiated in November 2009, it officially began on Monday, April 5, 2010 and will end on Monday, December 31, 2012. To apply for the HAFA program, homeowners should visit or call their banks to inquire about how they can participate.
What is HAMP?
HAMP: Home Affordable Modification Program, a government program which makes $75 billion available in funding to help 3-4 million homeowners at risk for foreclosure stay in their homes. HAMP allows eligible mortgagees to lower their monthly payments to 31% of their pre-tax income, or lower, through a loan modification. The adjustments are introduced on a temporary basis but are made permanent after the homeowner makes three on-time payments.
What is Foreclosure?
Foreclosure: Forced sale of a property, in some states done through a trustee sale. Foreclosure is a legal process. Foreclosure is NOT a type of property.
What is the Role of a REALTOR®?
Role of the REALTOR®: To serve as a resource for our clients. To understand the emotional and financial complexities of a short sale or foreclosure. To recommend or refer a client to seek advice from a qualified financial, tax or legal professional.
If you or someone you know are facing the possibility of foreclosure or need help with a short sale, please feel free to contact me at any time with questions.
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