Friday, April 23, 2010


A few terms which have picked up steam in the alphabet soup that is real estate lately are HAMP and HAFA.

HAMP -Home Affordable Modification Program

HAMP is an existing program attempting to modify loans to keep people in their current homes. Sometimes even this isn't enough to be able to help a family stay in their home though. As such, HAFA was introduced.

Fannie Mae has made some extensive information available about HAMP.

HAFA - Home Affordable Foreclosure Alternatives

HAFA officially began on April 5, 2010 and ends December 31, 2012. This is a program designed by the Treasury Department to try to reduce foreclosure by providing incentives to help move short sales along or to complete a deed-in-lieu of foreclosure. Any lender participating in HAMP is required to participate in HAFA.

Some examples of the incentives are:
  • $3,000 for borrowers to help with relocation costs
  • $1,500 to loan companies to help process the transaction
The National Association of Realtors (NAR) has published an FAQ about HAFA.

It's not pleasant to find yourself in a situation where you need to ask for help, but these and other programs are out there. Make sure to contact your local Realtor to see if they can help you.

No comments:

Post a Comment