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The Making Home Affordable Program 

Many homeowners are struggling with their mortgage payment due to loss of work, changes to house whole income, as a result they may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure.

With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe. Talk to a legal expert about HAMP - Our foreclosure attorney can answer all of your questions.

These options are available for homeowners who: 1. do not qualify for a trial mortgage modification under the Making Home Affordable Program; 2. do not successfully complete the trial period for their modification; 3. miss at least two consecutive payments during their modification period; or 4. request a short sale or deed-in-lieu of foreclosure.

In order to qualify for HAFA, a home owner must meet the basic eligibility requirements for HAMP. They are:

1. The property is the borrowers principal residence.
2. The mortgage is a first lien originated before 01/01/09.
3. The mortgage is delinquent or default is reasonably foreseeable.
4. The current mortgage balance is $729,750.00 or less.
5. The borrowers monthly mortgage payment exceeds 31% of their monthly gross income.
6. If the borrower has mortgage insurance, the mortgage insurer must waive their rights to collect any deficiency.

If a borrower meets the following criteria, the participating servicer must give the borrower the option to participate in HAFA.

1. The borrower did not qualify for the HAMP trial period.
2. The borrower did not successfully complete the HAMP trial period.
3. The borrower is delinquent on their HAMP modification.
4. The borrowers requests a short sale or deed-in-lieu.

The good news for sellers who participate in HAFA:

1. The lender is required to forgive any deficiency.
2. The seller will get $1500.00 at close of escrow.
3. The short sale will be pre-approved and the listing price will be provided to the listing agent by the loan servicer.
4. The servicer will provide written approval within 10 days of receipt of an executed purchase contract.
5. The servicer will pay up to 3% to junior lien holders, but no more than $3000.00.

The good news for buyers:

1. The endless waiting for short sale approval will be eliminated.
2. Servicer will allow up to 45 days for close of escrow.

This program will take all the frustrating unknowns out of the short sale process.

The program provided $3000.00 for junior lien holders and requires them to give up their rights to pursue a deficiency. If a junior wants more than $3000.00 or refuses to give up their right to pursue, the borrower may not be able to obtain clear title as required. If there is more than one junior, $3000.00 may not be enough to satisfy them all.

If you would like to speak with one of our Financial Representatives or the Foreclosure Attorney, call 1 (877) 442 4577 now!

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