The home affordable foreclosure alternative (HAFA) is one of the viable options which could be used by homeowners who have been approved for a HAMP loan modification but are finding it difficult to stay current on their modified monthly mortgage payments. Typically, the HAFA is designed to assist homeowners facilitate a short sale of their homes successfully in case they are delinquent in paying their monthly mortgage installments under the Home Affordable Modification Plan. The federal program HAFA is administrated by the Treasury Department and is in effect ever since 5th April, 2009. Nevertheless, the HAFA provides struggling homeowners with a unique opportunity to save their homes even if they are at risk to losing it to their creditors despite having qualified for the home affordable modification plan. Here is some crucial information on HAFA provisions which could guide you in your endeavor to save your home.

The below mentioned is what you need to know about the HAFA home mortgage modification plan.

1. The HAFA is a complimentary alternative to the HAMP and is primarily meant for homeowners who qualify for the HAMP but are still not in a position to keep their homes.
2. The Home Affordable Foreclosure Alternative Program loan modification program utilizes the financial as well as the hardship information provided by the borrower for the HAMP loan modification.
3. It permits house makers to obtain pre-approval for short sale from their homes even before the property is listed. Such terms include minimum acceptable net proceeds.
4. Borrowers are required to be completely free from any kind of liabilities that might arise from the first mortgage debts. Furthermore, the process does not require cash distribution, promissory note or even deficiency judgment.
5. Borrower can get a $3,000 towards relocation assistance if qualified.
6. Loan servicers are entitled to get $1,500 for administration and processing fees.
7. The home affordable foreclosure alternative plan also offers incentives up to $ 2,000 to investors who might permit short sale proceeds worth $6,000 to be evenly distributed between subordinate lien holders on a one-for-three basis.
8. The HAFA program requires lenders, who are actively participating in the HAMP, to have a written policy which is consistent with the investor guidelines and accordingly implement the HAFA plan. Additionally, the policy needs to include clauses for various parameters that relate to potentiality of financial loss, local markets, and the home foreclosing action timing as well as motivation and cooperation from borrowers.

To get more useful information on the Obama loan modification programs, it is hereby recommended to utilize the professional services offered by reputed online service providers like LoansStore.