When it becomes too difficult financially to maintain homeownership, there are options to avoid foreclosure.  When you short sale your house, you can sell for an amount that's "short" the amount you still owe.  The advantage of the HAFA program is that it can Ease the Transition.  The HAFA program offers $3,000 in relocation assistance, relase of liability from your mortgage debt, less damage to the credit by avoiding the foreclosue and and quicker path back to homeownership than with a foreclosure.

 

Most homeowners consider short selling their home if unable to qualify for a loan modification or if having received a modification that didn't workout.  Other reasons I see are when you need to move and sell the house.  When the mortgage becomes unaffordable, you need to find a way out and many choose to move to places where the cost of living is less.  It is important to act quickly, however if a Notice of Default is imminent or already been filed since lender can deny homeowners from HAFA if there is a foreclosure sale date less than 60 days away.

 

For an up to date summary of information on HAFA you can visit the HAFA Short Sale Page. The HAFA Program Overview is the most reliable information since it is from the www.hpadmin.com site.  To find out if you are HAFA eligible, call Jason Hector at 818-626-6469 or you can check to see if your lender is on the list of MHA Participating Loan Servicers.  The Treasury Department Home Affordable Foreclosure Alternatives Program (HAFA) has been a huge help in providing protections for both homeowners and realtors.  There are specific timelines for lender and homeowner response times which help to keep the files moving.

 

When my clients are having difficulty with their servicers and they are under review for one of the MHA programs like a HAFA short sale, HARP Refinance, or MHA Modification, I use the HAMP Solution Center Escalation Process.  This process allows borrowers and agents to open complaints against their lender when they are not following the guidelines under one of the Making Home Affordable Programs.  This has been a big help in getting unwilling lenders to postpone foreclosure sale dates and getting compliance when lenders and servicers are not acting according to the HAMP guidelines.  It is my goal to be a generous resource and offer my assistance to those willing to accept help.  The ultimate goal being to assist borrowers in qualifying for the best program they are eligible.