In This Section | Do You Qualify for HAFA Assistance?
[col_13]
Here are the qualifications to participate in the HAFA short sale program:
- A loan modification has been denied.
- This is the owner’s principal residence and the owner resides there.
- Must be a first lien that is a non-GSE mortgage (government sponsored enterprise such as Fannie Mae or Freddie Mac.)
- The first loan originated before January 1, 2009.
- The loan is delinquent or will be in default in the near future.
- The current unpaid principle balance is equal or less than $729,750.
[/col_13]
Lenders suffer huge losses in revenue when homeowners default on their mortgages. Since your lender’s primary mission is to lend money, it has no interest in owning or selling your home. A foreclosure is a very expensive experience for your bank; therefore your lender will attempt to reclaim as much money as possible. One of your lender’s (and your) best options may be to come to an agreement to sell your property through the short sale process.
A short sale takes place when a lender agrees to accept a loan pay-off that is less (short) what the bank is owed by the homeowner.
If a family hardship is making your mortgage unaffordable, you may be able to take advantage of a government initiative called “Making Home Affordable” and one of its programs, called “Home Affordable Foreclosure Alternatives” or “HAFA.” This program was designed to help homeowners whose mortgage payments are just out of reach of a loan modification. For owners who do not qualify for a loan modification, the HAFA program may be the next option.
One of the biggest benefits of the HAFA program is that it provides $3000 as an incentive to homeowners to complete a successful short sale or execute a deed-in-lieu; both foreclosure avoidance measures. In addition, the homeowner will be fully released from future liability for the first mortgage debt – with no cash contribution, promissory note or deficiency judgment permitted. The HAFA program is currently scheduled to end December 31, 2012.
Not all lenders participate in this program; some have their own versions of HAFA. If your loan is owned by Fannie Mae or Freddie Mac, these entities offer programs similar to HAFA. Before you proceed with a loan modification or a HAFA short sale, check to see which entity owns your mortgage:
Fannie Mae
1-800-7fannie
www.fanniemae.com/loanlookup
FreddieMac
1-800-Freddie
www.freddiemac.com/mymortgage
Remember, even if the HAFA program does not apply to your situation, help may still be available for you
Contact Us to Learn More – 813.294.5786