The U.S. Treasury has released the details of the Home Affordable Foreclosure Alternatives (HAFA) program which provides instructions to lenders and servicers. The purpose of the HAFA program is to provide an alternative for homeowners who do not qualify for a loan modification. The alternatives are usually a short sale of a deed-in-lieu of foreclosures.

If you are a homeowner in Cardiff, Encinintas, or Carlsbad and have received a Notice of Default on your property, you need to know about these new HAFA guidelines.

The HAFA program streamlines the short sale process:

• If you have already filed financial information for a loan modification, you do not need to file it again if you are applying for a short sale.
• You can receive pre-approved short sasle terms before you list your property.
• You should be fully released from future liability for the debt by the lender.
• You will receive $1500 for relocation after the short sale.

The HAFA program is scheduled to begin on April 5, 2010, but servicers may choose to implement it earlier. The HAFA program only applies to non-Fannie Me of Freddie Mac loans up to $729,750.

This entry was posted on Monday, January 4th, 2010 at 3:44 am and is filed under Homes Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.