What is the Home Affordable Foreclosure Alternatives Program?

The Home Affordable Foreclosure Alternatives (HAFA) Program is a federal program designed to help homeowners in South Carolina who are facing the threat of foreclosure. The HAFA Program helps borrowers who are already in default on their mortgage and have no other options. It also helps lenders and investors find a solution that is in the best interest of all parties involved. Through HAFA, homeowners can avoid foreclosure and receive financial assistance with their outstanding mortgage, such as principal reduction or a short sale. Under a short sale, the money received from the sale of the home is less than the total remaining mortgage debt. The lender must agree to forgive the remaining debt after the sale in order to complete the short sale. With HAFA, lenders must provide written notification to the borrower and offer the homeowner the alternative to make a one-time lump sum payment. This lump sum amount reflects the current fair market value of the property and is typically lower than the amount owed on the mortgage. In addition, participants in the program must be eligible for a trial loan modification from their lender, as determined by the National Mortgage Settlement. Furthermore, they must also meet other requirements, such as being delinquent on their mortgage payments and having a loan that was originated prior to January 1, 2009. The HAFA Program is one way to help struggling homeowners avoid foreclosure and find a more favorable solution. By providing financial assistance and alternative options, the HAFA Program provides a path to keep borrowers in their homes and helps lenders and investors find a solution that works for everyone involved.

Related FAQs

What is the Unlawful Internet Gambling Enforcement Act?
What are some common banking laws?
What is the Money Laundering Control Act?
What are the rules and regulations related to consumer banking?
What is the Cash Management Improvement Act?
What is the Home Mortgage Disclosure Act?
What is the Investment Company Act?
What is the difference between a secured loan and an unsecured loan?
What is the Home Ownership and Equity Protection Act?
What is the Consumer Leasing Act?

What is the Home Affordable Foreclosure Alternatives Program?

Related FAQs

Related Blog Posts