Well starting April 5, 2010, you may qualify for the HAFA (Home Affordable Foreclosure Alternatives) the presidents new plan is a directive by the US Treasury Department that will encourage banks (by paying them $1,000) and homeowners (paying them $1,500) to move if they sell their home for less than they paid for it, through a Short Sale. The program refers to the money for homeowners’ ass “relocation assistance.”
The basic benefit of this program to homeowners is they would avoid foreclosure that would impact credit scores negatively by causing a drop by as many as 300 points and prevent many from buying another home for years to come.
The Bank benefits because they could get more for the property than in a foreclosure situation.
Overall benefits would slow the decline of Property values in the surrounding neighborhoods while reducing crime and vandalism of vacant bankowned homes in communities.
- Homeowners need to first go through the HAMP program to apply for a loan modification.
- Home is a principle residence.
- Mortgage originated prior to Jan. 2009.
- Mortgage is owned or guaranteed by Freddie Mac or Fannie Mae.
- Borrower is delinquent or will be in the foreseeable future.
- Homeowner has a hardship.
- Borrower’s total monthly housing payment exceeds 31 percent of gross income.
- Unpaid principal does not exceed $729,750