What is the Home Affordable Foreclosure Alternatives Program?

The Home Affordable Foreclosure Alternatives Program (HAFA) is an initiative created by the U.S. Department of Housing and Urban Development (HUD) to help homeowners in Georgia who are behind on their mortgage payments or who are facing foreclosure. HAFA is a voluntary program that helps homeowners avoid foreclosures by providing financial assistance and offering alternative solutions. Under HAFA, homeowners may qualify for different types of assistance, such as: a short sale, a deed-in-lieu of foreclosure, or a loan modification. In a short sale, the lender agrees to accept a lower payoff of the mortgage so the homeowner can sell their home and avoid foreclosure. In a deed-in-lieu of foreclosure, the homeowner voluntarily transfers ownership of the property to the lender. A loan modification changes the terms of the original loan such as principal reduction or lowering the monthly interest rate to make the payment more affordable for the borrower. HAFA also provides incentives to borrowers and lenders who participate in the program. Borrowers are eligible for up to $10,000 in relocation assistance and are protected from any deficiency judgment if they accept a short sale or deed in lieu of foreclosure. Lenders may also be eligible for financial incentives, such as a loan note modification payment and a servicing release premium. Overall, the Home Affordable Foreclosure Alternatives Program is designed to give borrowers a way to avoid foreclosure and lenders an alternative to foreclosure. By providing financial assistance and alternative solutions, HAFA helps ensure that homeowners in Georgia have the financial resources and options to stay in their homes.

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What is the Home Affordable Foreclosure Alternatives Program?

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