Foreclosures have taken this country by storm and unfortunately, one of the states most affected is Florida. While the majority of homeowners prefer to attempt to qualify for the Homeowner Affordability Modification Program, (HAMP) which is a government program intended to help homeowners keep their homestead by modifying the monthly mortgage payment, not every homeowner qualifies for (HAMP). Therefore, to avoid foreclosure and all the consequences it entails, the government offers homeowners the HAFA program, or Home Affordable Foreclosure Alternatives Program. HAFA does not allow the homeowner to keep the home, however, it does assist the homeowner in getting out of the financial mess they are in. HAFA is especially helpful for those homeowner who even after a modification of their loan terms are still unable to afford the home.
This Program allows those homeowners who do not qualify for HAMP to either sell their home for less than what it is worth, through a Short Sale or to turn the deed of the property in to the bank, through a Deed in Lieu of Foreclosure. HAFA has set out a detailed process with published guidelines that a homeowner may follow in order to qualify for HAFA. These options will help homeowners preserve their credit, avoid deficiency judgments, avoid the filing of a bankruptcy and also avoid any further negative reporting to the credit bureau by the lender and allowing the homeowner to regroup and begin anew by reestablishing their credit score to purchase a home under the new market conditions.
Ray Garcia
www.raygarcialaw.com
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Law Office of Ray Garcia, P.A.
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