Up until now, homeowners that found themselves “upside-down” in their mortgages were limited in options. The standard procedure would be to list their home with a realtor and try a possible short sale. But lets be honest, short sales are far from short and probably will take a very long time to process and close. Well you are in luck! As of April 5, 2010 there is new hope for those who find themselves a victim of foreclosures.
HAMP and HAFA are acronyms for Home Affordable Modification Program and Home Affordable Foreclosure Alternative. These two programs are a new alternative to speed up the short sale process. In this process, the borrower actually pre-approves terms from the lender before listing their home with a realtor. This program is intended to move quickly, possibly within a 45-day timeframe.
Overseen by Fannie Mae, HAMP and HAFA’s program fully releases the borrower from deficient debt and may receive a certain amount of funds to rent a home, as to simply move on with their lives. In these programs you are dealing with less negotiation, no mitigation and realtors commission is a full 6 percent.