Home Affordable Foreclosure Alternatives Program (HAFA) A Short Sale – Redding
The U.S. Treasury Department created the Home Affordable Foreclosure Alternatives Program (HAFA) for mortgage lenders to establish a short sale process and deed-in-lieu of foreclosure policies, procedures and forms for homeowners.
A short sale is a real estate transaction in which the proceeds from the sale of the property will fall “short” of paying off the loan amount. The lender decides that a “short” pay off and taking a moderate loss is better than foreclosing on the homeowner.
A “Deed in Lieu” of foreclosure is a legal process in which a homeowner gives all interest in a property to the lender to satisfy a loan that is in default and avoid foreclosure proceedings.
A benefit to the borrower is that it hurts his/her credit less than a foreclosure transaction will.
The Making Home Affordable program was created to help the foreclosure crises and has two primary programs Home Affordable Modification Program (HAMP) and Home Affordable Foreclosure Alternatives Program (HAFA) were designed to protect homeowners from foreclosure or provide better alternatives to foreclosure for them.
Home Affordable Modification Program (HAMP) was created to provide rules and incentives for loan modifications.
Homeowner who could not qualified for HAMP because of insufficient income or homeowners that were unable to complete a HAMP modification may qualify for a HAFA short sale in Redding.
HAFA allows the homeowner to receive pre-approved short sale terms prior to putting the property up for sale with a licensed real estate agent.
A valuable feature of HAFA short sale requires the mortgage carrier to fully release the homeowner from future liability for debts. (No deficiency liability)
HAFA Short sales in Redding also may provide financial incentives to homeowners, banks, servicers and investors to complete and participate in the HAFA short sale process or deed-in-lieu of foreclosure, instead of a traditional foreclosure.
Contact the Redding Short Sale Team for A Free Private Consultation.