North Shore Views

HAFA Explained

The government’s HAMP (Home Affordable Mortgage Modification) was put in place in early 2009 to help alleviate the housing crisis. With the goal of keeping people in their homes and out of foreclosure, the program offered incentives to lenders to renegotiate mortgages with homeowners who were struggling to make their monthly payments. HAFA (Home Affordable Foreclosure Alternatives) was an expansion of this program earlier this month. It includes provisions and incentives for lenders to allow short sales or deeds in lieu to homeowners in default as options to avoid foreclosure.

HAFA is designed for homeowners who have applied to HAMP for assistance but have had no success with their loan modification program. Participation in HAFA doesn’t save the homeowner from losing his property, bt it can eliminate the effects of a foreclosure on the homeowner’s credit.

Here is a video that explains the program in terms we can all understand.

Tags: HAFA

This entry was posted on Monday, April 26th, 2010 at 1:39 pm and is filed under Real estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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