The process of HAFA program nitrated under the federal government's loan modification program is seen as the advantage to the foreclosed residential properties. Homeowners who cannot afford their home and also want to avoid the repercussions of foreclosure, have a good chance available for them under the HAFA program which the part of Home Affordable Modification Program or the HAMP. Under the HAFA Program which is a small, yet effective constituent of the Federal government's mortgage loan modification program, the home owner, and his/her mortgage servicer as well as the investor is given incentive for completing short sale or deed in lieu of foreclosure. With HAFA out there, the home owner can breathe sigh of relief where he/she can easily avail affordable home and also lower the mortgage debt.
HAFA program provided under the federal government loan modification process is available to only those home owners who are not qualifying in trial mortgage as given in Making Home Affordable Program (MHAP); do not consummate trial period for modification; fail to provide two consecutive payment s un the loan modification periods, and above all search for short sale or deed-in-lieu of foreclosure. It is also significant to note here that HAFA program is available to only those home owners who are current on their home mortgage, besides facing genuine hardship in acquiring the loan. In one simple statement, HAFA is the program which has been exclusively designed to provide fast and easy alternatives to homeowners who are undergoing a foreclosure on the property.
Act now, if you are really thinking to be a proud home owner, and moreover if you are really facing foreclosed property, then, you ought to know that there's nothing best than HAFA. It is the best deal in federal government loan modification.
It should be made clear that MI (Mortgage Insurance) companies and the HELOC loans (non-purchase) are the two spoilers of HAFA. Both MI and HELOC loans are simply ignoring the short sale deals altogether. Further, it is very necessary to note here that both MI as well as HELOCS (junior liens) have to ease their criteria of accepting at least in the wake of home foreclosure deals.
Neither the home owner and nor the bank is benefiting from HAFA program under the home loan modification program started by the federal government. The only benefiting part is the new home buyer. However, a clear understanding of HAFA program has to be taken before any final judgments can be made. Until then, it is quite natural to observe that HAFA is beneficial for the home owner whose property is foreclosed.
Overview: HAFA is a federal government plan that stands for Home Affordable Foreclosure Alternatives. Even though it not might be much helpful, there are still some good points about the HAFA plan from a theoretical approach. The stimulation behind this Government program was a good one. However, it did not work well as you can see the information around. Since the HAFA plan just launched out in April, still now there have been very small short sale packages accomplished through the HAFA program. There are chances most likely more than a million small sales that have been done in that time, but reached at small portion through the HAFA plan which is far behind the ratio that Government was hoping to be.
Author Bio: Marshall Fairchilde is a periodical writer on Refinanceitt.com, a US based mortgage refinance services provider, that general provides useful information on Home Affordable Foreclosure Alternative program and home affordable modification program.