What is HAFA and What Does It Mean For Homeowners in Litchfield Park, Goodyear, and Avondale?
What is HAFA?
HAFA, or Home Affordable Foreclosure Alternative, was initiated on November 30, 2009 by the U.S. Treasury. HAFA is a part of the Making Home Affordable Program that the Obama administration has created in homes to helping homeowners in distress. With a goal of providing homeowners with a real solution to an unaffordable mortgage, HAFA offers homeowners incentives to avoid foreclosure by taking advantage of either a short sale or a deed-in-lieu of foreclosure. By using the foreclosure alternatives of a short sale or a deed-in-lieu, homeowners not only get the incentive, but the lender also agrees to forgive the remaining mortgage debt.
What are the benefits for Litchfield Park, Goodyear, and Avondale residents?
- Possibly less of an impact on your credit than if you were to let your house foreclose. Check with a credit expert.
- Under HAFA, if you qualify, you will be eligible for a $3000 relocation expense as an incentive to complete a successful short sale or deed-in-lieu.
- HAFA offers a more streamline process which allows homeowners to sell their homes more quickly by setting deadlines for the lender to respond.
- Homeowners also receive pre-approved short sale terms before they list the property which assists in expediting the sale as well. This is a key difference for this program which should make it easier for all parties involved.
- HAFA prohibits your bank from pursuing a homeowner for the remaining loan balance once the short sale or deed-in-lieu has been successfully completed.
So what does this mean for if you are a homeowner in Litchfield Park, Goodyear, and Avondale?
It means you may have an excellent alternative to foreclosure. If your property is your principal residence, you applied for HAMP and were unable to complete it, your mortgage loan was originated before 2009, your unpaid balance is less than $729,750, and you are behind or will behind on your payment in the foreseeable future, then you may be able to sell your property as a short sale through the HAFA program.
Contact Cinda Rose at 623-252-9350 or by email at cinda.rose@thewestvalleyhometeam.com to find out if you are eligible. If you don't qualify for HAFA, you can still conduct a short sale or a deed-in-lieu. The important thing is to contact a REALTOR®, a real estate lawyer, a tax expert and a credit expert and determine which route is better for your situation.
Our website if full of valuable information for distressed homeowners. If you do one thing, please arm yourself with the information that you need to make an educated decision about your financial future. Visit our website today at www.TheWestValleyHomeTeam.com.
Cinda Rose
REALTOR®
Certified Distressed Property Expert (CDPE)
The West Valley Home Team at Welcome Home Realty
623-252-9350
