The white house has recently announced updates to the HAFA Program. The updates have changed the eligibility requirements for the program which will qualify more homeowners and provide additional guidance for loan servicers.
HAFA, The Homes Affordable Foreclosure Alternatives Program, is designed to give homeowners a variety of options to avoid foreclosure and offer incentives to both lenders and borrower to utilize short sales and deed in lieu of foreclosures. The motivation behind creating HAFA was to help Americans in underwater homes to transition from them to more affordable homes without having to go into foreclosure. The short sale incentive allows borrowers to escape their deficiency balance following a short sale on their home, and then provides them with $3000 in relocation assistance to complete the transitional process.
The March 2012 updates include:
- The extension of the HAFA submission deadline for borrowers for short sale agreements and requests for short sale agreements to December 31st, 2013.
- Removal of the current occupancy requirements for HAFA. The old requirements stated that in order to qualify you must have lived in the home as your primary residence for a period in the previous 12 months.
- Second liens can now get up $8500, instead of the previous amount of $6000
- Lenders can now accept full payments from borrowers that want to make a full contractual payment to remain current on their loan.
For more information on the Home Affordable Modification Program or
HAFA visit their website, or talk with a
Jacksonville foreclosure defense attorney at the Law Offices of Justin McMurray P.A. to see how the updates affect you at (888) 316-2131 and schedule your free consultation.