The Home Affordable Foreclosure Avoidance Program Seeks to Assist Struggling Homeowners

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When President Obama signed the Home Affordable Act into law, many aspects were introduced but all had one common goal; to help homeowners get through the difficult times that have placed them in impossible situations. After the housing market crashed in 2007, countless Americans were faced with the possibility of losing their home to foreclosure – largely due to a sudden dip in values resulting in them owing more on the home than the home was worth.

The Home Affordable Foreclosure Avoidance Program is a benefit that allows qualified homeowners to obtain a waiver of deficiency so that the lender does not come after them once all is said and done. One very attractive aspect of the program to homeowners considering alternatives to foreclosure is that the bank will provide up to $3,000 in moving costs at the time escrow closes.

Though this is a popular program, not everyone qualifies. For starters, the home in question must be the borrowers’ primary residence. There are other considerations too.

To be sure that you are availing the maximum amount of the benefit available to you, be sure to contact a real estate agent that is well versed in the workings of short sales, foreclosure avoidance and the HAFA program in general. There are two websites where you can get more information and find out if this program is right for you:

www.LasVegasShortSaleHelper.com
www.StayorShortLasVegas.com

The first website is a great resource for information. The second website will help you figure out when your property will become an asset again. Both will provide some direction on where you might want to head next.

For a customized consultation about your situation with an expert that has dealt with many, many short sales, contact us today. Keep in mind, not everyone qualifies, there is a specific process that must be followed and not every agent has the expertise to deal with this type of complex transaction. It is critical that you find an agent that is committed to your best interests.

Qualifying for HAFA; Exploring Alternatives to Foreclosure

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Go to www.LasVegasShortSaleHelper.com for more information >>

If you feel you are stuck with a home that has a mortgage larger than its value, it may be time to consider a short sale. For more reasons than ever now, there are programs issued by the government designed to help homeowners through this very difficult time in their lives.

With already existing incentives, such as the $3000 relocation funding that is disbursed in many short sale transactions, there are now some more guidelines that have widened the scope of qualifying homeowners.

First, let’s look at the six must-know items about the HAFA (Home Affordable Foreclosure Alternatives Program) that have been around for some time now:

• The home must have been purchase prior to 2009
• It must be delinquent, in default or seriously in jeopardy of being in default
• An unpaid principal balance of less than $729,750 is the limit
• The lender servicing the loan must be a HAMP (Home Affordable Modification Program)
participating lender
• The home must be the applicants’ primary residence*
• The monthly mortgage amount is not to exceed 31% of the homeowners’ gross income*

Now, having said all this, notice the asterisks on the last two points above. The notes below will share the most recent changes to the program that have enhanced qualification eligibility guidelines.

*Effective June 1, 2012 President Obama Administration made some important changes to the HAMP Program. Among other relaxed guidelines, homeowners with secondary properties that are currently rented or where the homeowner intends to rent them may qualify.

Another change reported to the program is related to homeowners’ debt-to-income ratios. As of the newest guidelines, borrowers that exceed 31% debt-to-income ratio may still be eligible for the program.


We know that not all benefits are available but a lot of it has nothing to do with whether a seller qualifies for it or not. The real reason many homeowners never see light of day on some of these cash incentives is because they are dealing with an agent that has little to no experience with short sales and the HAFA program. A good real estate agent that understands the HAFA process is critical. If you end up working with a real estate agent that is less experienced with these types of sales then you stand to risk losing thousands of dollars. And for no good reason.

It’s all about knowing the timing of the process, filling out all documents precisely and completely, making sure everything is perfect. As far as the $3,000 relocation incentive that is a part of the HAFA program or other potential lender-based incentives, only your lender will actually be able to tell you whether you qualify for an incentive. What we can do is position you to be a strong candidate for what might very well be rightfully yours. For a customized consultation to discuss your specific home and situation, contact us today.