Lenders are working hard to increase their resources in handling the sheer volume of defaulted mortgages across the country.

We are in regular contact with these lenders and, as you can imagine, they’d like to avoid
the high costs of foreclosure and facilitate as many alternatives as they possibly can.

Home Affordable Foreclosure Alternatives (HAFA)

The federal government has also made foreclosure avoidance easier through recently enhanced programs. HAFA is a federal initiative put in place to benefit homeowners who do not qualify for mortgage modifications and would like to pursue short sales.

This program is designed to expedite foreclosure avoidance options for homeowners in need. HAFA promotes the swift execution of a short sale or deed-in-lieu through financial incentives to all parties involved, facilitating the transaction.

In a deed-in-lieu of foreclosure, the property is given fully to the lender because the homeowner can no longer make payments, and the property is then sold to retrieve part of the loan balance owed. A deed-in-lieu, however, may have some of the same effects as foreclosure on your credit report.

Another significant benefit of a HAFA short sale is the requirement that lenders and junior lien holders waive their right to a deficiency judgment.  This means your lender can’t collect the portion of the mortgage not covered by the transaction.

Such protection allows you to more quickly regain financial stability and move on with your life.

What If My Home Doesn’t Sell?

If you attempt a short sale under HAFA and a transaction does not close by the program deadline, the lender will receive your deed-in-lieu of foreclosure.

This will provide you with effectively the same result, since you will have a more positive solution to foreclosure, your mortgage debt will be forgiven, and you will receive the $3,000 incentive to help with moving costs.

Keeping Up to Date

Over the past few years, government and lender programs have undergone numerous enhancements and expansions. As CDPEs, we keep close attention to the changes as they happen, so that you can get the most relevant, current information and the best possible service. If you would like to find out more about these programs, or if someone you know needs assistance in avoiding foreclosure, please don’t hesitate to contact us.

More Foreclosure Options are Available

Call us today to find out about even more foreclosure alternatives that are available to you if you qualify.   We can help you develop a strategy to take advantage of the many  foreclosure avoidance programs available to the millions of Americans just like you who are struggling toward a more stable financial future. Together, we can put you back on track to financial stability.