Home Affordable Foreclosure Alternative program (HAFA)

Homeowners with documented hardships with the assistance of a Professional Real Estate Agent can negotiate “short sales,” enabling the owner to sell their home for less than the balances owed in order to avoid foreclosure.

This blog post for this week it to present an opportunity to homeowners who are  “upside down” in their mortgages, as well as mortgage lenders, may want to take advantage of the federal Home Affordable Foreclosure Alternative program, or HAFA.

In 2009, the Treasury Department introduced the HAFA program to provide an option for homeowners unable to keep their homes through the Home Affordable Modification program. The HAFA program took effect April 5, 2010, and sunsets on Dec. 31, 2012.

The benefit of a HAFA short sale is that borrowers are no longer responsible for the difference between what they owe on their mortgage and the amount the home sells for, so it doesn’t affect sellers’ taxes.

This is a great opportunity for homeowners. The U.S. government is allowing individuals who have purchase a home to be able to walk away while still maintaining there credit through a short sale as an incentive that they would be able to purchase a home within the next two years to revamp the housing market.  However,  depending on the mortgage companies some may have to wait longer than others.