Real Estate Property Loan Home Alternative Foreclosure Program
The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures.
HAFA alternatives are available to all HAMP-eligible borrowers who:
1) do not qualify for a Trial Period Plan;
2) do not successfully complete a Trial Period Plan;
3) miss at least two consecutive payment during a HAMP modification; or,
4) request a short sale or deed-in-lieu.
In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage.
Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer – provided title is free and clear of mortgages, liens and encumbrances. With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.
HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.
For more details on HAFA, CLICK HERE.
This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Having trouble making home loan payments, Tap into Uncle Sam’s Home Affordable Foreclosure Alternative Program (HAFA) is brought to you by SimplifyEm Pay Rent Online and Property Management Software
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