Foreclosure Alternatives: Fannie Mae Announces HAFA Program

On behalf of Bankruptcy Law Firm of Clare Casas on Wednesday, September 15, 2010.

A little known foreclosure alternative program by Fannie Mae became available on August 1, 2010. The Home Affordable Foreclosure Alternatives ("HAFA") program provides options to homeowners so they can avoid foreclosure. It also provides incentives to lenders for them to either approve short sales or accept a deed-in-lieu of foreclosure.

Under the program, homeowners will receive $3,000 to help them relocate to another residence. This money is received at the closing if it's a short sale or within 5 days of the lender accepting the deed-in-lieu of foreclosure. Part of the agreement is that the homeowner must vacate the property and leave it in acceptable condition.

To be eligible for HAFA, owners must not qualify for a HAMP loan modification ("Home Affordable Modification Program") or they were approved for a HAMP modification but missed two consecutive payments under HAMP.

There are other alternatives to saving your home also. In a Chapter 13 bankruptcy, you can force the bank to accept any arrearages through the court's payment plan. You can also eliminate a second mortgage through a Fort Lauderdale Chapter 13 bankruptcy filing if you owe less on your first mortgage than what your home is presently worth. Talk to a Broward County bankruptcy attorney for more information on this option.