The Governmentâ€™s alphabet soup of mortgage help programs has really set a lot of confusion amongst homeownerâ€™s, agents, and professionals alike with all the programs that they have brought to pass. HAFA, as relatively one of the newer programs, has been met with a large bit of confusion as to the terms to be expected. We located the governmentâ€™s pamphlet meant to shed some light on the subject:
MAKING HOME AFFORDABLE
The Obama Administrationâ€™s Making Home Affordable Program is a critical part of the effort to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure.Making Home Affordable includes opportunities for homeowners to modify or refinance their mortgage to make their payments more affordable. Some homeowners may feel that they can no longer afford their home, even with modifiedpayments. These homeowners still want to avoid the devastating effects of foreclosure.
The Home Affordable Foreclosure Alternatives (HAFA) Program makes it easier for homeowners to work with their mortgage servicer to sell their home (short sale) or deed it to the bank (deed-in-lieu of foreclosure). Under HAFA, after a short sale or deed-in-lieu is successfully completed, a homeowner is cleared of all remaining debt and obligations on their first lien mortgage to their mortgage servicer, and is eligible for $3,000 to help with moving expenses. For many homeowners, these solutions are the safest way to transition to more affordable housing.
To learn more about the potential impact of a short sale or a deed-in-lieu on your credit report, visit:Â http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm.