By Sandy Flores
Real estate instructor at the College of Santa Ana
The Treasury Department provided a viable alternative program, providing home owners who can not keep their property through modification programs, to consider the HAFA Program (Alternatives to avoid Foreclosure) to avoid foreclosure. The HAFA takes effect on April 5 and ending on December 31, 2012.
HAFA provides incentives to help homeowners who can not qualify for a modification accessible opt for a short sale / short sale or deeds in lieu of repossession to avoid foreclosure.
If you meet the requirements for these alternative programs through HAFA short sale, banks shall undertake to accept less than the full balance of its debt and provide up to $ 3,000 for moving expenses. Under HAFA requires that the bank exempts the owner of the financial responsibility for the “NOTE” on the main home loan and the bank undertakes not to go after the homeowner for the difference of the outstanding balance, or require any contribution by homeowner.
This program aims to stimulate the HAFA short sales and deeds in lieu of foreclosure allowing families and servers avoid foreclosure process that are expensive, and minimize the negative impact of foreclosures on borrowers , financial institutions and communities.
The HAFA simplifies and streamlines the short sale process providing procedures, deadlines, standard documentation and effective. You will comply with the requirements under the rules of Fannie Mae, to buy another home in two years instead of five to seven years if your credit report does not reflect replenishment.
“Scripture instead of foreclosure” is an instrument in which the mortgagor (borrower) transfers all property interests to the mortgagee (lender) to satisfy a loan that is in default, and therefore avoid the process foreclosure. The main advantage is that the debtor is discharged of debts associated with the mortgage loan in question.
The methods of the short sale are a bit complex, so it is very important that you gather as much information as possible before making a final decision on which option would be the most assertive for you. It is advisable to obtain all necessary guidance and advice of a qualified professional who is experienced with extensive knowledge in short sales to know which alternative is the most convenient and favorable to you.
Remember that it is also in their favor the law of tax relief for cancellation of mortgage debt, which was enacted on December 20, 2007. This law is intended to help those homeowners who for financial reasons have been affected under this law allowing the exclusion of income realized as a result of the modification of the terms / conditions of the mortgage, or foreclosure on their primary residence.
Act immediately if this is happening, or if you are in a similar situation. Time goes so fast! Not only have less time to react but also less possibilities and solutions to work with them and avoid foreclosure on your property.