Our Government loves acronyms and one of the latest is HAFA, or the Home Affordable Foreclosure Alternatives Program. I wrote about this in an earlier blog, but wanted to give a quick update. HAFA was designed for homeowners who did not qualify for a loan modification as another way to avoid foreclosure. Here are a couple of quick facts:
- Borrowers will receive pre-approved short sale terms from their lender
- Borrowers will be fully released from any future liabilities from their first mortgage
- Financial Incentives will be provided to borrower $1,500 for relocation expenses
- All servicers participating in HAMP will be required to implement HAFA in accordance to their own written policy.
This program does not take effect until April 5th, 2010, but some servicers may implement this sooner.
