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Information about the HAFA program

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By : Sonia Smith    99 or more times read
The Home Affordable Foreclosure or HAFA Program began in 2009. It is a short sale or deed-in-lieu proceeding. The benefit of this program is that the homeowner or borrower will no longer be responsible for the difference of the amount owed and the amount that the home will sell. Furthermore, the homeowner will be given a relocation assistance of $3,000 during a successful closing. In accordance to the HAFA program, the lender could offer a homeowner or borrower a deed-in-lieu or short sale foreclosure process.

As part of a short sale agreement, the borrower will be provided a certain time frame to sell the home, the minimum is 120 days. Upon a successful sale, the borrower will be released of all the liability related to the unpaid mortgage. Moreover, the borrower also gets the relocation aid. If the mortgage prefers a deed-in-lieu, the homeowner should vacate the home because it should be in a clean and saleable condition. The mortgage lender also provides a borrower full release of the debt and claims against the home.

In order to qualify for the HAFA program, you should have lived in your home for at least the last 12 months and have documented financial difficulties. Moreover, you should not have bought a new home for the last year and your first mortgage should be lower than $729,750. The mortgage should have been obtained on or before January 1, 2009 and you are convicted of certain crimes such as forgery, fraud, felony larceny, tax evasion or money laundering that is associated with a real estate transaction for the last ten years.

The mortgage provider may not solicit the borrower for the HAFA program not unless they are first considered for modifying the loan of other programs are offered. In addition, there are also other programs offered and other requirements. If the lender is a participant of the program, it should first take into consideration all qualified homeowners before starting a foreclosure proceeding. The Home Affordable Foreclosure Alternative program provides more options to prevent expensive foreclosures and provide incentives to borrowers or homeowners, investors and servicers using a short sale or DIL to avoid foreclosure. The HAFA program also streamlines and makes simple the deed-in-lieu or short sale process by providing performance timeframes, standard process flow and standard documentation.

Each lender will have you fill up a financial statement that should be submitted to them upon completion. They will use this to determine if you qualify for the loan modification method. In order to complete the financial statement, you should access your financial statement, monthly bills, bank statements and your recurring expenses. Through this, you can document all your assets and liabilities properly. The HAFA program offers a great opportunity for a homeowner.

Nevertheless, depending on the mortgage company, soma may wait a little longer than others. The program is truly beneficial to those in fear of losing their homes through foreclosure. However, it also has its limitations and drawbacks and a homeowner could still lose his or her home in the end.
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