Home Affordable Foreclosure Alternative (HAFA) Program

The government’s new solution to the foreclosure crisis – the Home Affordable Foreclosure Alternative (HAFA Program) takes effect today.

What will this do for the homeowner and real estate professionals in San Diego and Orange County?

The HAFA program is designed to complement the HAMP Program (aka loan modification). A homeowner needs to go through the HAMP Program and qualify. If they qualify this is what it will do for the homeowner

It will allow up to $1,500 in moving expenses
It will give up to $3,000 to junior lien holders to release their lien/s
It will result in full satisfaction of the debt without signing a promissory note, provide cash at closing, or have to worry about a deficiency judgement
It will ensure the real estate professional helping the homeowner receives full commissions

Here’s where it may all fall apart:

All lenders must agree to participate in the HAFA Program. THe HAMP Program was a dismall failure because of the “voluntary participation” clause. Why will this be any different?
It requires the Buyer of the house to hold it for at least 90 days. What if someone buys it to fix it up and sell it? This will eliminate most cash buyers in this market.
The homeowner has to qualify for the program.
The home must be your primary residence. If it’s a second home, or rental it doesn’t qualify.

Although it sounds good on paper, stay tuned for the results.

If you are tired of being shackled to your debt, and feel you are ready to sell. Call us at (619) 631-4546. We will work with you to negotiate the debt and get your house sold so you can move on with your life.