So how can you benefit from HAFA
Prior to applying for the home affordable modification program requirements, it could be vital for borrowers to explore various viable alternatives to avoid a possible home foreclosure. This is because if you fail to qualify for the HAMP, you need to be prepared to solve your mortgage problems. Nevertheless, in such cases you could always go in for a short-sale or deed-in-lieu of foreclosure options under the HAFA.
- you are living in the home as your primary residence
- the amount you owe on your first mortgage for your property is equal to or less than:
- $729,750 for 1 unit
- $934,200 for 2 units
- $1,129,250 for 3 units
- $1,403,400 for 4 units
- you owe more on your home than its worth
- your current mortgage was taken out on or before January 1, 2009
Prior to applying for the home affordable modification program (HAMP), it could be vital for borrowers to explore various viable alternatives to avoid a possible home foreclosure. Remember, if you obtain a proper financial debt management plan, you could be in a much better position to improve your credit ratings. This in turn could automatically boost your chances of qualifying for other loan modification plans provided by different lenders. Anyway the HAMP home mortgage loan modification plan requires borrowers to furnish complex documentation in comparison to alternative programs you could be required to exercise enormous patience since the average time taken to respond could range from at least one year to even a year. In any case, if you fail to qualify for the HAMP, you need to be prepared to solve your mortgage problems.
- What if you are denied for HAMP?
If you face a HAMP denial, you could always look for the home affordable foreclosure alternative plan (HAFA). Typically, the Home Affordable Foreclosure Alternative Program is designed to assist struggling homeowners who are still finding it hard to stay current on their monthly mortgage payments despite being approved for the HAMP. You could avoid a formal home foreclosure procedure by requesting a “short-sale” or “deed-in-lieu of foreclosure” procedure under HAFA.
- Initially you may not succeed
Some distressed borrowers, who do not meet the federal home affordable modification program requirements, are still being told by advisors to take advantage of various government loan modification plans or get their existing home mortgages modified through their current lenders directly. Consequently, if you default in paying the modified monthly mortgage installments, you could again be faced with a home foreclosure in no time. Thus, home loan modifications provided by lenders directly do not provide any kind of guarantee that your homes could be saved. Nevertheless, to prevent yourself from losing your home you have other viable options to make your monthly payments affordable.
- How can HAFA help you?
If you have been unsuccessful either in staying current on your HAMP loan modifications or completely ineligible, you should consider using the home affordable foreclosure alternative program alternatives. By opting for a short sale, you could get a pre-approval from your lender without any negotiations. Besides, the entire process of short-sale under HAFA usually gets over in as less as 45 days but in some cases it might take more time. However, to understand the process, an expert guidance could be of immense help.