There Are Still Incentives for Homeowner’s

By Sandy Flores

Special to Excelsior

The Treasury Department provided a viable alternative program focused on providing homeowners who can not keep their property with options to avoid foreclosure. The HAFA, Alternative Programs to Avoid Foreclosure, officially went into effect on April 5, 2010 and expires on December 31, 2013.

 HAFA provides incentives to help homeowners who can not qualify for a modification accessible, opt for a “Short Sale / Short Sale” or “Scripture Repossession Location” to avoid foreclosure.

If you qualify under these alternative programs HAFA, through the “Short Sale” or “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” in the primary mortgage loan, and the bank undertakes not go after the homeowner for the difference between the outstanding balance, or require any contribution by homeowner.

With HAFA, aiming at stimulating the “Short Sales and Scripture Repossession Location”, allowing families and servers avoid foreclosure process is very expensive, and minimize the negative impact of foreclosures on borrowers, institutions financial and communities.

The Alternative Program simplifies to avoid Foreclosure (HAFA) and streamlines the short sale process providing procedures, deadlines and 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 Repossession Location” or “Deed in Lieu 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 therefore avoid default and foreclosure proceedings. 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 your favor “The Taxpayer Relief Act of Cancellation of Mortgage Debt” which decreed December 20, 2007 and expires on December 31, 2012. 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.

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.

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