In light of the rising number of property foreclosures in the United States, the government has expanded the Home Affordable Modification Program (HAMP) to include provisions and incentives for servicers to allow short sales or deeds-in-lieu as positive options for eligible homeowners in default who wish to avoid foreclosure. The new program is called Home Affordable Foreclosure Alternatives (HAFA).
What is the Home Affordable Foreclosure Alternatives Program? Here are some of its benefits:
- Borrowers will receive $1,500 in relocation expenses from the US Government.
- Loan Servicers will receive $1,000 from the US Government per transaction that they process.
- 2nd lien holders will receive up to $3,000 of the sale proceeds for releasing their liens.
- 1st lien investors can receive up to $1,000 from the US Government for “signing off” on payments that subordinate lien holders.
- Borrowers must be “fully released” from any and all further liability.