Friday, April 9, 2010

Only 2% of loan mods are being approved!!

Only 2% of loan mods are being approved!!

Home Affordable Foreclosure Alternatives Program (HAFA)

Q: What is HAFA?

A: HAFA, which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP), provides possible monetary incentives to homeowners in connection with short sales and deeds-in-lieu of foreclosure.

Q: I am already in the process for a loan modification, why would I participate in HAFA for a Short Sale or Deed in Lieu?

A: So far, it looks as though only 2% of the loan modification applications are being approved (with and without HAMP). This means that homeowners are in a potentially worse situation than before the loan modification.

Q: Who is eligible for HAFA?

A: Loan Servicers must consider HAMP-eligible borrowers for HAFA within 30 days after the borrower does at least one of the following:

Does not qualify for a HAMP trial period plan
Does not successfully complete a HAMP trial period plan
Is delinquent on a HAMP modification (misses at least 2 consecutive payments)
Requests a short sale or DIL

Q: Do I have to start over with all of the financial information?

A: Not necessarily. HAFA can use the same documentation that was collected for the loan modification.

Q: Is the lender going to come after me for the deficit?

A: Lenders who are participating in the HAFA program must waive rights to seek deficiency judgments and may not require a promissory note for any deficiency. Rules also apply to participating junior lien holders.

Q: What do I need to do?

A: Call a qualified Realtor to help you through the process.

Brian L. Thomas is licensed, certified and very experienced in distressed real estate situations.

CALL NOW! You can't afford to wait!