Question: Can you tell me what HAFA is and what it means for homeowners?

 - HAFA, or Home Affordable Foreclosure Alternatives, is part of the Making Home Affordable Program aimed at helping homeowners during this current economic crisis, specifically through short sales and deeds-in-lieu.

- HAFA’s ultimate goal is to provide homeowners with real solutions to an unaffordable mortgage.

- The program offers homeowners $3,000 to avoid foreclosure through a successful short sale or deed-in-lieu.

- In these foreclosure alternatives, the lender agrees to forgive the remaining mortgage debt in exchange for either the deed to the house or whatever amount the borrower can sell their house for.

- Short sales have historically taken up to six months or more to be completed; so another component of HAFA is setting deadlines for the lender to respond, making the process quicker and less burdensome.

- As another protection for homeowners, HAFA prohibits the lender from pursuing what is called a deficiency judgment, meaning the lender cannot pursue a homeowner for the remaining loan balance once the short sale or deed-in-lieu has been completed.

- By combining all of these components, HAFA makes short sales more appealing to all involved parties and ensures a quick, efficient processing time so that homeowners can move on with their lives.

- Keep in mind that homeowners do have to meet specific qualifications to participate in HAFA, so they will need to contact a qualified real estate agent to find out if they are eligible—preferably an agent who is extremely familiar with the short sale process and the HAFA guidelines.

For more information on Short Sales and Foreclosure Prevention, visit our website at www.FindForeclosureHelpOnline.com or call today: 805.405.0930 (Barry Shapiro, CDPE)