The new Home Affordable Foreclosure Alternative Program, or HAFA, is meant to assist homeowners who are eligible for a loan modification but cannot work out a payment plan they can afford. Instead of being foreclosed, HAFA assists such homeowners with the short sale or deed in lieu of foreclosure process. HAFA is voluntary, and lenders are not required to sign up for it. Do you qualify under HAFA? Here's a checklist to see if you do:
1) Your loan is a Freddie Mac or Fannie Mae loan. However, you may qualify even if it is NOT a Freddie Mac or Fannie Mae loan.
2) Your bank or servicing company signed up to participate in the Home Affordable Modification Program (HAMP) by December 31, 2009, AND your bank has also since signed up to participate in HAFA.
3) The property in question is your primary residence.
4) Your loan is the first mortgage on the property.
5) You took out the loan before January 1, 2009.
6) Your unpaid balance is less than $729,750.
7) Your monthly mortgage payment is exceeds 31% of your gross income.
8) Your loan is already in default, OR default is reasonably foreseeable.
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4 comments:
I qualify for this HAFA program, but what is the difference between the two? Does it allow me to stay in the residence? Please advise. Thank you very much.
Under HAFA, you are either selling your property or deeding it back to the bank. HAFA does not have a provision for allowing you to stay in the property, unless you deed it to the bank and the bank chooses to lease it back to you.
I have 2 loans, the first is a fannie mae loan with first corp mtg., and the 2nd is a HELOC with Chase. The first has 100% equity for its balance and the 2nd has 50% of it's balance, would I still qualify? If it's denied by being Fannie Mae, why? Isn't Fannie government loan and suppose to help the public in times of turmoil?
You MAY qualify. There are a number of factors that go into determining whether or not you qualify, and you will have to apply to find out!
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