HAFA-Alternative to Foreclosure
The HOME AFFORDABLE FORECLOSURE ALTERNATIVES (HAFA) program offers distressed homeowners a way to avoid foreclosure.
If you have tried to modify your current loan and were denied or still cannot afford the payments after modification, you automatically are approved for the HAFA program.
Fannie Mae and Freddie Mac each have their own version of HAFA. For more information about who owns your loan you can always go to http://www.HUD.gov or http://www.fanniemae.com You can enter your property address and it will tell you if you are owned by Fannie Mae, etc.
There are lots of different variables and each loan is different. Please contact me for more information that is specific to your home.
In general the the borrower need to meet the following criteria:
The mortgage was originated on or before January 1, 2009;
The mortgage loan is delinquent or will be in default in the forseeable future;
The current unpaid balance is equal to or less than $729,750 (there are higher amounts for a 2-4 unit dwelling)
The borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross income.
With the short sale transaction- this must be an arms length transaction. The bank will give you $3,000 at closing for relocation assistance and they forgive your debt. Debt forgiven under HAFA could have tax and credit rating impact for the borrowers. You are advised to get tax and financial advice. The bank pays the Realtors commission.
