Tuesday, 17 August 2010 20:09
, all these acronyms are starting to sound like the alphabet soup of the Roosevelt Days
Not to fear, the programs are actually very straight forward as long as a homeowner is aware of all of the steps needed to complete the process. Often homeowners feel confused because a step was missed, which basically cancels the entire process.
Allow us to shed some light on how to receive $3000 to relocate if you can no longer afford to stay in your home:
First, it is important to discuss the HAMP (Home Affordable Modification Program). The goal of this program was to reduce the mortgage payments of homeowners down to 31% of their monthly wages, thus creating more expendable cash and ultimately moving the economy.
A major flaw in this program is that not every person qualified for the program. This resulted in people simply not being able to afford their home, which resulted in the path toward foreclosure.
To try and help the people that did not fit in the HAMP program, the government initiated the Home affordable foreclosures alternative
(HAFA) program. The point of this is exactly what it stands for, it is for the homeowner that is on the path to lose their home.
Through HAFA, a homeowner can sell their house through a short sale, which is a system where an agent works with the clients lender to sell the property for less than is owed.
The HAFA program requires certain steps that must be done in order. Although program requirements change, below is the current system to qualify for HAFA:
- The homeowner must have applied for HAMP, and either a) been denied or b) was approved, and failed to make the required trial payments (2 consecutive).
- The homeowner/and or agent talks with the lender about applying for the HAFA program
- If qualified the lender will issue an agreement in which the homeowner must return the agreement with in 14 days.
- Lender will send the homeowner a Short Sale Agreement.
- The Short Sale home must be filled out and sent to the lender to begin the HAFA program.
- The agent will list the property and work toward receiving an offer.
- After an offer is accepted, the homeowner fills out a Request of approval of short sale form.
- The lender will give a response with in 10 days.
- If offer is approved by the lender, the buyer has 45 days to close and purchase the home.
- At the time of closing, the seller receives $3000 to relocate to a new home.
So, the important part of the HAFA program is to get the preliminary steps complete. It is not a complicated program, but it is very important to follow every step carefully and get material back to the lender in the required amount of time.
Not all people are qualified for the program. But, The Craig Team can help you with the necessary steps to be in the HAFA program. We can talk with your lender to help you get into the program, as well as help you with the steps to receive the $3000 in relocating.Photo by Filomena Scalise