Bellingham Neighborhoods: What the HAFA?

What the HAFA?

What the HAFA?  Well, HAFA stands for Home Affordable Foreclosure Alternatives.  To me it doesn't make sense. I mean if the homes were affordable there would be no need for Foreclosure Alternatives, correct?  Now, that makes sense to me. O.k. wait, let me try again...what I guess it means is... they have alternatives to Foreclosure that can make your home that isn't currently affordable, well, affordable.  O.k. now that that makes more sense.  But, no that's not accurate either.  What they are offering is actually alternatives to foreclosure but not exactly alternative for you to keep your home... or make your home affordable...not with this program anyway....so where does the "Home Affordable" come in...we will soon find out.  Rather than letting the home go into foreclosure they are actually incentivizing homeowners to do 1 of 2 things....here they are:

1.  Short Sale (selling a house for less than what is owed with lender approval)

OR

2.  Deed-in-lieu of Foreclosure (Giving the keys back to the bank)

So where does the "Home Affordable" come in that's mentioned in the name of the program, well, huh?  I think that it makes taking the homes back by the banks more affordable to the banks.  See, the banks, lenders, investors that own the mortgage actually get incentives for offering you these 2 choices for opting to forgo the foreclosure process which costs them around $50k/foreclosure.  So, they are making this more affordable for someone...yup, themselves!  

Now, Mr./Mrs. homeowner, they aren't going to leave you high and dry, they'll actually pay(cough)bribe you into opting into one of this more affordable options.  Typically it's around $3000.  I can say that it is a nice gesture, for sure...no doubt about it.  I just like to poke fun at the fact that they make it out to be all about the homeowner, when really it's all about them...yet again.

In order to qualify for one of the above 2 options you must attempt to do a loan modification through the HAMP program, which stands for the Home Affordable Modification Program.  A program that may be able to make your home more affordable. 

Although this article is definitely in gest, these 2 options are very viable for underwater homeowners.

If you'd like more information on any of these options, please feel free to text, email, or give me a call.  It can be rather confusing trying to make sense of all this, especially if you're experiencing any sort of distress.  I'd be glad to chat, obligation free to show you what options you have, depending on your circumstances.

Tara Camp ~ 360-296-3244 ~ www.BellinghamForeclosureHelp.com ~ Tara@BellinghamForeclosureHelp.com

 

Comment balloon 3 commentsTara Camp • August 13 2010 02:01AM

Comments

These programs are hurting the industry and the homeowner.  I wish they would get their act together.

Posted by Tim Lorenz, 949 874-2247 (TIM LORENZ - Elite Home Sales Team) over 8 years ago

Nice Blog, I really like how you break it down...Your absolutely correct ..its all about the Lenders.

The Best part of the HAFA program is that IF & WHEN the Bank approves the Short Sale or DIL, the Seller(Home Owner) is released from their deficiency balances, which is what most, if not ALL the Borrowers are trying to achieve.

Good job!

Posted by Hector M. Yepis Realtor Broker, TEAM MAUI Real Estate (RE/MAX Island Properties) over 8 years ago

Hi Tara, good input for homeowners underwater on their loan.

Posted by Dan Edward Phillips, Humboldt and Del Norte Counties, CA (Dan Edward Phillips, Humboldt and Del Norte Counties, CA) over 8 years ago

Participate