Saturday, July 17, 2010

The Home Affordable Foreclosure Alternatives (HAFA) Program

The Obama Administration has been planning and working on some programs that would enable homeowners to easily seek help with their problem about mortgages. Several programs have already been made public and available. Some homeowners were able to benefit already from the government programs. They have indeed found the help they needed to keep their home.

That is why the government has adopted the newest anti foreclosure program, and this is called the Home Affordable Foreclosure Alternatives (HAFA) program. HAFA is the latest short sale program of the government.

HAFA program is designed in order to provide the last option for homeowners to avoid foreclosure. If you are eligible for a loan modification under the Home Affordable Modification Program (HAMP) but you have failed to be approved by the loan, then you can go to HAFA as an alternative route. The borrower must be evaluated first before they can be declared as eligible for the program. So expect that there is still elimination from eligibility. This is done to make sure that every borrower is really in need for the help of the program.

HAFA required the listing brokers and the homeowners to cooperate with each other from the marketing to the sales process. This program requires honesty between the broker and the Homeowners. Eligible homeowners must agree to maintain the property and should always respond to servicer inquiries. The brokers on the other hand must always be sincere in closing the sale.

The program desires to create a process of win-win solution. With HAFA, the paperwork and timelines will be standardized and the short sale process will be shorter. With this, it can reduce the stress of a long term financial dilemma. Homeowners who are facing serious financial distress can now find help for foreclosure from HAFA and various programs. It can help prevent the increase of foreclosure and it can create positive impact especially in the housing market.

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