It is everyone’s dream to own a house and with mortgage financing readily available; this dream is becoming a reality for quite a number of people with each passing day. However, with the bad economy , things have been tough for some homeowners.
It is becoming increasingly hard for people to make timely payments on their mortgages and as a result cases of foreclosure are on the rise. In an attempt to help out home owners who can no longer afford their mortgages, the government has come up with the Home Affordable Foreclosure Alternatives program or simply HAFA.This program is designed for people who have failed to achieve success with HAMP (Home Affordable Modification Program). The whole idea of HAFA is to help people so that they do not have to suffer the foreclosure ordeal.
There are two options under HAFA: Deed-in-Lieu and Short Sale. With the Deed-in-Lieu option your mortgage financier will require you to give them back the title deed to your property hence giving them ownership. The short sale option will involve you selling your property at a price that is less than what you owe your mortgage financier. Whichever option you go for, you will have quite a smooth transition.
Here is why HAFA is beneficial to all those who qualify: for one, real estate experts and counselors will provide you with very useful advice free of charge. Also, the great thing about the short sale option under HAFA is that once you are done with it you are absolutely free from the mortgage debt. It does not matter that you sold the house at lower price than what you owed your financier; once you transfer the amount to them, you need not worry about the remainder as it will be waived. Still on the short sale option, you do not have to put in too much effort trying to determine the right price for your home. Basically what will happen is that your mortgage company will help you out determine the appropriate price.
Obviously, when you can no longer make your mortgage payments and are forced to make use of the HAFA program, chances are that you are financially constrained. What this means is that even finding money to relocate might prove to be a challenge. Under HAFA, once you ‘get rid’ of your home and mortgage burden in general, you will be provided with $3000 specifically to assist you with the relocation process.
In order to qualify for the HAFA program, you will be required not to have bought home over the past twelve months and have a documented financial difficulty. You will also need to have obtained your mortgage on or prior to 1st January 2009; and it should not be more than 729,750 dollars. Finally you should have a clean slate over the past decade as far as felony, theft and tax evasion are concerned in relation to property transactions.
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