Home Affordable Foreclosure Alternatives Program (HAFA)
In 2009, the Treasury Department set up HAFA program to assist a feasible option for homeowners who are not able to keep their homes with the present Home Affordable Modification Program (HAMP). The HAFA program takes effect on April 5, 2010—even though few servicers can implement it sooner, if they meet sure requirement and before on December 31, 2012.
Home Affordable Foreclosures Alternatives Program: Overview
HAFA offers incentives with regard to a short sale or a deed-in-lieu of foreclosure (DIL) utilized to avoid foreclosure on a loan qualified for modification with the HAMP program. Servicers participating in HAMP are even necessary to conform to HAFA.
HAFA Provisions
- Complements HAMP with providing a feasible alternative for borrowers who are HAMP qualified however nevertheless not able to keep their home.
- Uses borrower financial and hardship details previously collected concerning consideration of a loan modification.
- Let borrowers to get pre-approved short sales terms prior to listing the property (involves the minimum acceptable net proceeds).
- Forbids the servicers from needs a lessening in the real estate commission decided upon in the listing agreement.
- Needs borrowers to be entirely released from future liability for the first mortgage debt no cash contribution, promissory note, or deficiency judgment is allowable.
- Uses standard processes, credentials, and timeframes deadlines.
- Offers financial incentives: $1,500 for borrower transfer assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders.
Reduce your monthly payments
Lower your net interest rates
Lower your loan balance
Waive negatively accrued interest
Avail extensions on payments
