Credit-Yogi

HAFA Short Sale Prevents Foreclosure

 

Phoenix, AZ -- (ReleaseWire) -- 04/29/2014 -- Despite fiscal improvement throughout the country, some people are still faced with foreclosure. There are several government programs that can help stop the process. HAFA (Home Affordable Foreclosure Alternatives) is one. What is HAFA? It’s the effective program of last resort for those homeowners who do not qualify for other such plans. Credit-yogi.com is here to simplify the way HAFA benefits borrowers in trouble, including:

-Apply for Other Options 1st
-HAFA & HAMP
-Deed-in-Lieu of Foreclosure
-HAFA Short Sale Qualifications

Exhaust All Other Possibilities

Prior to applying for a HAFA-approved short sale, make sure it is the last possible thing one can do to avoid foreclosure. Other plans that one may qualify for include HAMP, HARP (Home Affordable Refinance Program), and HUD’s assistance. HARP works similarly to HAMP, but refinances one’s mortgage loan, which means it pays off the original loan, then draws up another one that has better terms. HUD can help veterans, those upside down on their loans, and even unemployed homeowners. Check the government’s website for more information.

The Relationship between HAFA & HAMP

Most people are familiar HAMP, which helps prevent foreclosure by modifying, or making changes to one’s mortgage loan. However, not everyone qualifies for HAMP. For them, there’s HAFA, which has easy-to-understand short sale guidelines. If one has been denied HAMP assistance, HAFA is a good solution. The lenders that work with HAMP also work with HAFA because eligibility requirements are very similar.

Deed-in-Lieu Explained

HAFA offers two ways to prevent foreclosure: short sales and the deed-in-lieu of foreclosure. The deed-in-lieu is one of the affordable foreclosure alternatives. Here, the homeowner agrees to sell his house to his lender for less than he owes on it. Once both the owner and the lender agree to this proposition, the sale goes forward. There is at least one benefit for the lender, besides getting most of its money back: It can spruce up the property, find some buyers for it, and make even more money off of it. Keep that in mind when considering this option.

Requirements for HAFA Short Sale

If one is interested in the more-popular HAFA short sale option, it will be helpful to both understand what it is and how to be eligible for it. When a short sale occurs, the property owner sells the home to a buyer for less than he owes on it. Some HAFA short sale requirements are that the home has to have been purchased prior to 2009, it must be one’s primary residence, and one must prove his financial hardship to qualify. The most important requirement is that he has to have been turned down for HAMP. Credit-yogi.com points out that most folks should be eligible for HAFA.

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