HAFA: Home Affordable Foreclosure Alternatives
HAMP: Home Affordable Modification Program
In March 2009 the Obama administration published detailed program guidelines for the Making Homes Affordable Program. HAMP is a program designed to enable borrowers that meet eligibility requirements to avoid foreclosure by modifying loans to a level that is affordable for borrowers and sustainable for the long term.
Due to the rise of the number of foreclosure’s in the United States, the government has expanded HAMP to include provisions and incentives for lenders to allow short sales as a positive option for eligible homeowners in default that wish to avoid foreclosure. The new program is HAFA.
HAFA is designed for homeowners who have applied to HAMP for assistance but have had no success with HAMP’s loan modification program. You still must meet HAMP’s eligibility criteria to participate in HAFA.
If you choose to participate in the HAFA program you will still lose your property but it can eliminate the effects of foreclosure on your credit. The financial incentives for participating in this program include $1000 servicing bonus to the lender and a $3000 relocation bonus for the displaced property owner |
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