Two new programs have been developed to give homeowners an alternative to losing their home to foreclosure, said Cristina Vaughn of Coldwell Banker Country Realty in Ramona.
Two government initiatives — Home Affordable (Loan) Modification Program known as (HAMP) and the Home Affordable Foreclosure Alternatives (HAFA) — may give distressed owners more time to either modify their existing loan or more time to sell their home in lieu of foreclosure, usually allowing the homeowner to stay in their homes until the property sells. If all else fails, Vaughn said they may execute a Deed in Lieu (DIL) of foreclosure.
The HAFA program took effect on April 5 and is designed to simplify and streamline the use of short sales. When a homeowner utilizes the HAFA program, borrowers are fully released from future liability for the first mortgage debt, so there would be no cash contribution, no promissory note and no deficiency judgment is allowed, noted Vaughn.
Additionally, homeowners are able to stay in their homes until they sell and, if they cannot sell, an alternative would be a deed in lieu (DIL) of foreclosure.
Some important components of the HAMP program are:
• Homeowners may not participate in HAMP and HAFA programs simultaneously.
• Homeowners in bankruptcy may be considered for the HAFA Program.
• A $3,000 incentive for borrower for relocation assistance when the home sells.
• Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. Vaughn is a certified short sale and foreclosure Realtor. While the HAFA Program is a new program available to distressed homeowners, she said it is important to work with a Realtor who knows the intricacies of these transactions and has experience working with distressed properties.
For more information, call Vaughn at Coldwell Banker Country Realty at 760-807-1250 or e-mail email@example.com.