What is the HAFA Program?

The HAFA is a Home Affordable Foreclosure Program started in the 2009. It is a deed-in-lieu or short sale process. The advantage is that a homeowner will not be anymore responsible for the difference between the owed amount on the mortgage and the amount that the home will sell. Moreover, the homeowner will receive a relocation assistance of $3,000 upon successful closing. In adherence to the program, the mortgage lender may offer a borrower or homeowner a short sale or deed-in-lieu foreclosure procedure.
As part of a short sale agreement, a homeowner or borrower will be given time to sell the property, with a minimum of 120 days. During a successful sale, the borrower will be released of all liability associated with unpaid mortgage. In addition to that, the borrower will also receive relocation assistance. If the mortgage opts for a deed-in-lieu, the home should be in a saleable state and the borrower should vacate the home by a fixed date. The lender should also provide the homeowner full release of the debt and other claims against the property.
You may be eligible to apply for the HAFA program if you lived in your home for the last 12 months and have documented your financial hardship. You should not have purchase a new house for the last twelve months and the first mortgage should be less than $729,750. Your mortgage should have been obtained on January 1, 2009 or before that and you are not convicted of fraud, felony larceny, forgery, money laundering, tax evasion for the past ten years that is related to a real estate transaction.
A mortgage provider could not solicit the borrower for the program unless they are first considered for loan modification or the other programs offered. Moreover, there are also other requirements to be met in order to qualify for the HAFA program. If the mortgage lender is a participant of the program, it should first consider all eligible homeowners before beginning a foreclosure process. The HAFA offers more options to avoid costly foreclosures and offer incentives to borrower or homeowners, servicers and investors using a DIL or short sale to avoid foreclosure. The program also simplifies and streamlines the short sale of deed-in-lieu process by providing a standard process flow, performance timeframes and standard documentation.
Each lender will ask you to fill out a financial statement form that you should submit to them. This will be used to determine your qualifications for a loan modification method. You should have access to your monthly bills, bank statements, financial statement and recurring occurrences to complete the financial statement. This way, you can also properly document your assets and liabilities. The Home Affordable Foreclosure Alternative provides great opportunity for each homeowner. Nonetheless, depending on the mortgage provider some may have to wait longer than others do. This program is indeed beneficial to people who are in the verge of losing their homes. However, the same as anything else, it also has limitations and drawbacks and homeowners could still lose their properties.

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