HAFA : Forgiveness of Mortgage Debt

By Sandy Flores

Special to Excelsior

The HAFA, Alternative Program to Avoid Foreclosure, officially went into effect on April 5, 2010 and expires on December 31, 2013. In November 2009, the Treasury Department introduced the feasible alternative program focused on providing homeowners who can not keep their property under a loan modification with other options to avoid foreclosure.

 If eligible under HAFA, through the 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, the bank is required to exonerate the owner of the financial responsibility for the “NOTE” on the main mortgage loan, and the bank undertakes to NOT go after the homeowner for the difference between the outstanding balance, or require any contribution by homeowner.

With the HAFA program is intended to encourage the “Short Sales” and “Scripture instead of repossession”, allowing families and avoid the process servers Foreclosure is very expensive, so as to minimize the negative impact of foreclosures on borrowers, financial institutions and communities.

The Alternative To Program simplifies Avoid Foreclosure (HAFA) and streamlines the short sale process, providing procedures, deadlines, standard documentation and effective. You will be eligible under the rules of Fannie Mae, to buy another home in a minimum of two years instead of five to seven years if your credit report does not reflect “repossession”.

“Scripture instead of repossession” or “Deed in lieu of foreclosure” is an instrument in which the mortgagor (borrower) transfers all interest in a property to the mortgagee (lender) to satisfy a loan that is in default and thus avoid the foreclosure process. The main advantage is that the debtor is discharged of debts associated with the mortgage loan in question.

HAFA provides incentives to homeowners who opt for a “short sale / short sale” or “deeds in lieu of repossession” to avoid foreclosure.

It is very important that you gather as much information as you can, before taking a final decision on which option would be more assertive for you. It is advisable to obtain all necessary guidance and advice of a qualified professional, to know which alternative is the most convenient and favorable to you.

Take action immediately if this is happening, or is in a similar situation. Time goes so fast! Not only have less time to take action, but also less possibilities and solutions to work with them and avoid repossession of your property. You can find more information on the HAFA program and other programs to assist homeowners facing a financial crisis in the website: www.makinghomeaffordable.gov / english / Pages / default.aspx

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