(HAFA) Home Affordable Foreclosure Alternatives – (Goverment Program)
If you cannot afford your current mortgage payment and it is time for you to shift to more affordable housing, then the (HAFA) Home Affordable Foreclosure Alternatives program is designed for your family. HAFA gives you two options to transition out of your mortgage into a better situation:a Deed-in-Lieu (DIL) of foreclosure or a short sale. During a short sale, the mortgage company allows you sell your home for an amount that falls “below” the amount you still owe to the mortgage company. In a Deed-in-Leu, the mortgage company lets you give the title back to the lender, transferring all ownership back to them.
Either way, HAFA offers many benefits that make the transition favorable for you:
You get free advice from HUD Approved housing advisors and licensed real estate professionals (like me). Unlike a conventional short sale, a HAFA short sale completely releases you from all mortgage debt once your property is sold. This means that you will no longer be responsible for making payments or the amount that falls “below” the amount you still owe. The agreed deficiency is guaranteed to be waived by the lender. During a HAFA short sale, your mortgage company (or companies if you have multiple loans) work with you to determine an acceptable sale price for your home in the current market. HAFA has less of a negative effect on your credit than a foreclosure or a regular short sale. When you close the deal, HAFA may give you $3,000 for relocation assistance.
You might be eligible for HAFA if you meet all criteria below:
- You have not bought a new house within the last 12 months.
- You have a (documented) financial hardship
- You obtained your mortgage before or on January 1, 2009.
- You have not have been convicted within the last 10 years of any theft, felony larceny, money laundering, fraud, forgery, or tax evasion on a mortgage or real estate transaction.
- Your first mortgage is below $729,750