There’s news that the federal Home Affordable Foreclosure Alternative (HAFA) program will be concluding at the end of 2016, with the current application deadline set at December 30, 2016. In today’s article from The Short Sale Gal Kristine Zelazo, we’ll explore what this means for homeowners and how it will impact thousands nationwide.
What is HAFA? Why is the Program’s End Significant?
The Home Affordable Foreclosure Alternative (HAFA) program is a unique federal assistance program that’s designed to provide homeowners with an “opportunity to exit their homes and be relieved of their remaining mortgage debt through a short sale or a deed-in-lieu of foreclosure (DIL). It also provides homeowners with $10,000 in relocation assistance.”
This is significant in a few ways. Firstly, homeowners who pursue a short sale through the HAFA program are exempted from a deficiency judgment. A deficiency judgment is issued in cases where the home sells for an amount that’s less than the amount owed on the mortgage (the very definition of a short sale.) In normal circumstances, the lender does have the option to pursue the borrower for the remaining sum via a deficiency judgment. But HAFA program participants are essentially “immune” from deficiency judgments as part of the program.
Additionally, homeowners will be unable to take advantage with the up to $10,000 in relocation assistance funding that is provided to HAFA program participants. This can mean the difference between a move that’s viable versus a situation where the homeowner is quite literally stuck in the property because they have no funds to relocate to a new home.
There are some significant concerns that the end of the HAFA program will be devastating for some homeowners, particularly in regions where foreclosure rates and distressed property sales remain at a high, including in regions such as Florida, the Las Vegas area and beyond.
Also, there are two other federal programs that will be ending in December. The Home Affordable Modification Program (HAMP) helps homeowners lower their monthly mortgage payments if they are struggling to make payments due to financial hardship and/or are delinquent or in danger of falling behind on their payments. The deadline for applying for HAMP is December 30, 2016. This is another program that could lead to more homeowners falling into a bad situation.
Also ending is the Home Affordable Refinance Program (HARP), which helps underwater homeowners refinance their mortgages. People who are current on their mortgage and have Fannie Mae or Freddie Mac loans may be eligible for this program. The deadline for applying for HARP is December 31, 2016.
Are You Thinking of Relocating from Your Home?
In short, if you’re thinking about pursuing a short sale or deed-in-lieu of foreclosure and would like to take advantage of the HAFA program, now is the time to take action! The coming months may serve as your final opportunity to take advantage of this program, including the significant relocation assistance of up to $10,000.
The Short Sale Gal Kristine Zelazo may be able to assist if you’re seeking to pursue a short sale or simply need to sell your home quickly. If you’re thinking of selling, simply complete Kristine’s home sale form and she will be in touch to discuss your situation.
Ready to Get Started in Real Estate Investing?
If you’re getting started in real estate, consider working with a real estate investing mentor like The Short Sale Gal, Kristine Zelazo. Getting started in real estate investing can be somewhat challenging, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you work with a real estate investing and short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Based in Florida, Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Then, call 786.570.0360.