What’s the HAFA Program?
If you own real estate and you are located in Los Angeles, the HAFA program can possibly help you if you’re having financial difficulties. The Home Affordable Foreclosure Alternatives (HAFA) is a program that is a type of short sale which can save you from irreparable credit damage. If you only thought that foreclosure was your last resort, you will want to look into this program to see if you qualify.
Foreclosures have been on the rise since the economy has been going down. Millions of homeowners are forced to sell their homes, foreclose, or resort to a short sale. What many real estate owners in West Hollywood and throughout Los Angeles don’t know is that HAFA can be a better solution as it frees them the money they would normally have to pay after going through a regular short sale.
To get you up to speed, a short sale is when you work with your mortgage lender to sell the real estate at a loss, accepting a price less than the market value. The homeowner will not have to go into foreclosure and will only have to pay the difference after the sale is made to a buyer. It’s important to note that a request for a short sale must be made before a foreclosure is sought by lenders.
What’s the difference between a regular short sale and the HAFA program?
The difference between a regular short sale and the HAFA program is that relieves you of the money you owe after the sale is made. What’s more, you can also get relocation assistance after the sale is made. This can help you start over and relive all the financial pressure that you have been under due to non payments.
The HAFA program is a national program available for mortgages owned by Fannie Mae, Freddie Mac, and other companies. In order to see if you qualify, you must look at the list of lenders that are participating in the program. Aside from that, there are also other eligibility factors that you must meet.
Am I eligible for HAFA?
You must have been in the property for the last year. You must have proof of financial difficulty – an example could be that you have been laid off your job. Your mortgage is less than a set amount and you received it on January 1, 2009 or before that date. You must also have a clean record and must not have bought a new property in the past 12 months. This means that it is ineligible for real estate investors.
If you live in West Hollywood and fear you are at risk of foreclosure, you should try to find out more details about the HAFA programs. Find out if this program is available to you and if you are eligible to apply. The HAFA program can help you with foreclosure, help you avoid file bankruptcy, and ensure your credit isn’t ruined.
To receive more information on this program, you can visit http://MakingHomeAffordable.gov or call 888-995-HOPE.
This article is not legal advice. Before enrolling in this program you should consult with your real estate agent, a CPA and/or legal counsel to make sure this is the right choice based on your circumstances and do your research.
