The HAFA Program

The HAFA Program - Foreclosure Alternatives for Homeowners

  

The Home Affordable Foreclosure Alternatives (HAFA) program is for borrowers who, although eligible for the government Home Affordable Modification Program (HAMP), are not able to secure a permanent loan modification or cannot avoid foreclosure. HAFA provides protection and money to eligible borrowers who decide to do a Short Sale.

HAFA Benefits to the Homeowner

Homeowners who are eligible for HAFA are given an equitable way to avoid foreclosure by performing a Short Sale.  Homeowners benefit by receiving fair time frames for completing each step of the process, compensation for moving expenses and protection from collection actions by their lenders. Some of the key benefits are:

• Borrowers receive $3,000 for relocation assistance.
• Lenders must allow the opportunity for the borrower to attempt a Short Sale before following through with a foreclosure.
• Borrowers are fully released from future liability for the first mortgage debt – lenders cannot ask for a cash contribution, promissory note, or deficiency judgment to complete a short sale.  Additionally, junior lien holders (i.e. 2nd mortgages) who participate in the HAFA incentives must also release borrowers from future liability.

Qualifications and Eligibility

In order to qualify for HAFA, borrowers must meet the basic eligibility criteria

• The property is the borrower’s principal residence.
• The first mortgage originated before January 1, 2009.
• The mortgage is delinquent or default is reasonably foreseeable.
• The mortgage’s unpaid principal balance is no more than $729,750.
• The borrower’s total monthly mortgage payment exceeds 31% of their gross income.
• The mortgage also needs to be serviced by a lender who is participating in the HAMP program (the majority of lenders are).

Bank of America to cut decision time to 20 days...

The Banks have learned that Approving Short Sales is their best option in cutting losses.

As a Certified Distressed Property Expert (CDPE),

we are very familiar with B of A, and how to fast track your Short Sale.

Do you Qualify for $3,000 from HAFA?

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To dsicuss your options, call Elaine Today at 702-768-4556

What to expect, whether your Buying or Selling...

Keep in mind when getting involved with any Short Sale,

that Short Sales are like fingerprints, they are all different.

Different banks, different amounts of money, different situations...

Call Today for a Free Consultation of your Specific Situation.

Elaine Hansen  -  702-768-4556

22.8% of Mortgages in Negative Equity

CoreLogic^® Reports 22.8% of Mortgages in Negative Equity

CoreLogic released negative equity data showing that 11.1 million, or 22.8 percent, of all residential properties with a mortgage were in negative equity at the end of the fourth quarter of 2011. This is up from 10.7 million properties, 22.1 percent, in the third quarter of 2011. An additional 2.5 million borrowers had less than five percent equity, referred to as near-negative equity, in the fourth quarter. Together, negative equity and near-negative equity mortgages accounted for 27.8 percent of all residential properties with a mortgage nationwide in the fourth quarter, up from 27.1 in the previous quarter. Nationally, the total mortgage debt outstanding on properties in negative equity increased from $2.7 trillion in the third quarter to $2.8 trillion in the fourth quarter.

Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

• Nevada had the highest negative equity percentage with 61 percent of all of its mortgaged properties underwater, followed by Arizona (48 percent), Florida (44 percent), Michigan (35 percent) and Georgia (33 percent). This is the second consecutive quarter that Georgia was in the top five, surpassing California (30 percent) which previously had been in the top five since tracking began in 2009. The top five states combined have an average negative equity share of 44.3 percent, while the remaining states have a combined average negative equity share of 15.3 percent.
• Of the 11.1 million upside-down borrowers, there are 6.7 million first liens without home equity loans. This group of borrowers has an average mortgage balance of $219,000 and is underwater by an average of $51,000 or an LTV ratio of 130 percent. For all first-lien-only borrowers negative equity share was 18 percent, while 41 percent of all first-lien-only borrowers had 80 percent LTV or higher.
• The remaining 4.4 million upside-down borrowers had both first and second liens. Their average mortgage balance was $306,000 and they were upside down by an average of $84,000 or a combined LTV of 138 percent. The negative equity share for all first-lien borrowers with home equity loans was 39 percent, more than twice the share for all first-lien-only borrowers. Over 60 percent of borrowers with first liens and home equity loans had combined LTVs of 80 percent or higher.

Your Las Vegas Real Estate Agent

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I'm a Realtor from Las Vegas.
I've been around for about 15 years...
Sold many homes and dreams.

How will this Affect My Credit?

The first chart shows the impact on the score for each stage of delinquency,

and the second shows how long it takes the score to fully "recover" after the fact.

 

- The magnitude of FICO® Score impact is highly dependent on the starting score.
- There's no significant difference in score impact between short sale/deed-in-lieu/settlement and foreclosure.
- While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.
- In general, the higher starting score, the longer it takes for the score to fully recover.
- Even if there’s minimal difference in score impact between moderate and severe delinquencies, there may be significant difference in time required for the score to fully recover.
 

One point to consider...

By avoiding Foreclosure, many individuals

are quickly able to obtain a credit score strong enough

to qualify for a new FHA Loan.

FHA 30 year fixed Interest Rate is currently at 3.875

and requires a minimum score of 600.

The Truth about Loan Modification

Too many people waste valuable time giving the banks a large amount of information

that the bank just turns around and uses against them.