Worried About Foreclosure? HAFA May Be Able To Help!

In 2009, the Treasury Department introduced the Making Affordable Program, a plan to stabalize the housing market and help struggling homeowners stay in their homes. While many families have received help through this program far too many people have not been able to keep their home even with a loan modification.

For these families, the Treasury Department established a new short sales program, call the Home Affordable Foreclosure Alternatives Program or HAFA. This new program provides a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010 and sunsets on December 31, 2012.

HAFA gives homeowners the following benefits:

• You receive a check for $3,000 at closing to help with moving costs,
• You HAFA streamlines the Short Sales and Deed-In-Lieu (DIL) processes,
• You will be fully released from future liability for your 1st mortgage debt (no cash contribution or deficiency judgment is allowed). Also, any junior lien holder who accepts a HAFA incenetive must also release you from future liability.

Eligibility for HAFA:

• The property must be your primary residence.
• The fi rst lien (your fi rst loan on your home) must have been originated before January 1, 2009.
• The mortgage must be delinquent or default must be reasonably foreseeable.
• The current unpaid principal balance may not be more than $729,750 (there are higher limits for 2- to 4-unit dwellings).
• Your total monthly payment must exceed 31% of your gross income.

Even if you meet these threshold requirements, the servicer must consider your particular circumstances. Not everyone will qualify. Sometimes the owner of the mortgage has rules that mean you or your home may not be eligible. That's why it is so important to work closely with the servicer.

For more information, contact Diane or Doug Briggs today, your "Certified HAFA Specialists".