Hafa Short Sales - A Government Program That Works!

Online, July 9, 2011 (Newswire.com) - Over 22 million Americans are currently behind in mortgage payments with foreclosure looming. There are two options: entertain potential economic ruin via foreclosure, or make payments on an underwater property, affectionately called "house arrest."

It's obvious that walking away and losing the property to foreclosure is probably the worst choice a homeowner could take. However, many homeowners become so frustrated when seeking alternatives with their lenders that they usually throw up their hands in defeat.

The beast of foreclosure will return to those living in recourse states such as Florida because banks are permitted to pursue the deficiency balance of defaulted homeowners. (This means, for example, if you have a mortgage balance for $150,000 and you sell the home for $100,000, the bank will pursue you, the original mortgage holder, for the $50,000.) Unfortunately, both the foreclosure and the deficiency judgment may go on the credit report, essentially ruining any buying power for the homeowner in life after foreclosure.

There is help for sellers via a short sale. A short sale occurs when the lender accepts a payoff on the loan that is less than the owed balance. These transactions require the expertise of a licensed real estate agent - to act as your personal liaison among the interested parties.
Good news, right?

Lenders often discourage HAFA applicants citing the extensive paperwork and extra processing time as two primary reasons for pursuing a "traditional" short sale. HAFA prohibits lenders from pursuing the deficiency. Any short sale transaction requires "extensive paperwork," and the transaction is only difficult and complicated without the assistance of a professional and expertise of a HAFA Certified Specialist.

A full release may not seem important now but there is life after short sale and a full release of liability truly affords the homeowner the opportunity to start the [financial] recovery process without fear of the deficiency haunting them in the future.