Let a Schaumburg Foreclosure Lawyer Explain the Home Affordable Foreclosure Alternatives Program (HAFA)

Sometimes a homeowner wants to let go of their home, but they want to do so on their own terms. At U.S. Law Attorneys, Ltd., we help you determine if you qualify for a short sale or deed-in-lieu under the Home Affordable Foreclosure Alternatives Program (HAFA). Both options allow you to avoid foreclosure and walk away from your home. Whether you complete a short sale through HAFA or outside of this federal program, our attorneys help ensure you do not owe a deficiency balance after the sale.

What Are the Benefits of HAFA?

Under the Home Affordable Foreclosure Alternatives Program, lenders must agree to release the homeowner from all future liability on the first mortgage. That means the lender:

• Cannot go after you for the balance remaining after the short sale
• May not require a cash contribution or promissory note from you as part of the short sale or deed-in-lieu agreement
• Forfeits the ability to obtain a deficiency judgment against you

For more information about how the Home Affordable Foreclosure Alternatives Program might benefit you, talk to a qualified Schaumburg foreclosure attorney at U.S. Law Attorneys, Ltd. Our attorneys are knowledgeable about HAFA and the other components of President Obama’s Home Affordable Program.

What Is the Difference Between a Deed-In-Lieu and a Short Sale?

If you sell your home for less than what you owe on the first mortgage, then you are completing a short sale. HAFA simplifies and streamlines the short sale process and protects you from any liability for the deficiency balance, which is the difference between the amount owed and the sale amount.

Under HAFA, when a person is unsuccessful in finding a buyer for a short sale, the lender can consider a deed-in-lieu. With a deed-in-lieu, you voluntarily transfer ownership of the property to the lender, and the lender releases you from the loan, even if the property is worth less than what you owe.

If you are considering letting go of your home and do not want to have a foreclosure on your credit report, discuss your options for a short sale or deed-in-lieu with a knowledgeable Schaumburg foreclosure lawyer.

Who Qualifies for the HAFA Program?

HAFA helps homeowners who qualify for the Home Affordable Modification Program (HAMP) but who:

• Do not qualify for a trial period plan under HAMP
• Do not complete a trial period plan under HAMP
• Miss at least two consecutive modification payments under HAMP
• Request a short sale or deed-in-lieu

To determine if you qualify for the Home Affordable Foreclosure Alternatives Program or other sections of the Home Affordable Program, speak to an experienced Schaumburg foreclosure attorney today. In some situations, bankruptcy may be the best option for obtaining debt relief. Learn about all of your debt relief options by contacting our Schaumburg foreclosure lawyers today for a free consultation. You deserve to get your life back.