Todd David Realty on How to Stop Foreclosure with HAFA

(Newswire.net — August 17, 2016) Mamaroneck, New York — A foreclosure is one of the most stressful experiences that a family could experience. Todd David Realty understands how hard a foreclosure could be on families, which is why they offer services that will help them avoid it. To help educate the public, the company has provided a clear description of the HAFA program, which is one of the most effective ways to avoid foreclosure; its benefits; and how to be part of it.

The HAFA (Home Affordable Foreclosure Alternatives) program is a federal government program announced in February 2009 at the urging of NAR. It provides homeowners with options to avoid a foreclosure if they can no longer retain their home. Through this program, homeowners may be completely relieved of their mortgage debt through a short sale or a DIL (deed-in-lieu of foreclosure).

A short sale is an agreement between the homeowner and their lender that allows the homeowner to list and sell the property with the awareness that the net proceeds may be less than their existing outstanding loan balance. While this method remains to be one of the more popular options in avoiding a foreclosure, there is still a possibility of it failing and resulting in a foreclosure. To eliminate this possibility, the HAFA program incentivizes both homeowners and lenders to work hand in hand to avoid foreclosure. The program also establishes rules that speed up the short sale process. Under HAFA, homeowners can now get preapproved short sale terms from their lender before putting their property on sale, which gives them knowledge of what exactly their lender would accept.

If the short sale is unsuccessful, the lender may consider a DIL as a second option. With a DIL, homeowners will have to voluntarily transfer ownership of their property to the lender. Once a DIL or a HAFA short sale is completed, the homeowner will be fully released from their remaining mortgage debt. The lender may not require cash contributions or promissory notes from the lender and may not pursue a deficiency judgment against the lender.

Under the HAFA program, homeowners may also quality for financial assistance to cover relocation costs. Homeowners or eligible tenants may receive $10,000 in relocation assistance if they provide their lender with evidence of occupancy.

There are certain requirements that homeowners must meet to be eligible for HAFA. Their mortgage should have been obtained on or before January 1, 2009, and the property should not have been condemned. They should also be in danger of falling behind on their mortgage or are struggling to make their mortgage payments. Moreover, homeowners should owe up to $729,750 on their primary residence, which should be a single-family home.

As a company that helps homeowners stop foreclosure, Todd David Realty strongly recommends homeowners to consider getting a short sale under the HAFA program to avoid foreclosure. Not only is the program effective, it is also easier on the homeowners’ part and takes less time than other anti-foreclosure methods.