You may have checked out your mortgage and financial situation and are available to the conclusion that it’s not an honest idea for you to remain in your home. However, you’ll still want to sell your home and obtain back a number of the equity that you simply put into it instead of have the bank foreclose on you. There are federal loan modification programs, chief among which is understood because the Home Affordable Foreclosure Alternatives (HAFA) Program, which will assist you sell your home and advance .
Generally speaking, traditional loan modification programs make it difficult for you to sell your home. This is because the loan modification process typically takes 3-6 months, which can be followed by a 3-6 month trial process during which you’ll got to make your payments. If your situation is such that you can’t afford to keep making any sort of payment, the bank may want to foreclose to get its money back. This puts you in a tight spot, because the bank has all the cards and no incentive to help you sell the home.
How The HAFA Program Works
HAFA is designed to enable and expedite the sale of your home and relocation once it is finished. There are two options for HAFA applicants:
- Short Sale – You sell your house for the amount of money that you’ve currently paid on the principal and interest of your mortgage, effectively getting your money back. The home ownership is then transferred to the new owner, and you are able to walk away.
- Deed-in-Lieu – You transfer home ownership to the financial institution in exchange for getting your mortgage paid back.
For a federal program, HAFA offers variety of perks and benefits that make it seem favorable to most consumer lending short selling offers. These include free advice from a loan modification lawyer, government oversight and assurance that your unpaid loan are going to be waived, a less negative credit effect than foreclosure or traditional short sale, and up to $3,000 in relocation assistance.
Before you opt to sell your home through the HAFA federal loan modification program, you ought to ask a professional jurist . She will help you determine if you should get mortgage forbearance, loan modification or attempt to sell your home through a short sale. She will also help you get all of your documents together for federal forms and visits to the bank. Connect with a loan modification lawyer today!