The Making Home Affordable (MHA) Program was introduced by the Obama Administration in 2009 in an attempt to stabilize the housing market and help struggling homeowners obtain relief and avoid Foreclosure. The program consisted of several smaller programs including the Home Affordable Modification Program (HAMP), the Home Affordable Refinance Program (HARP and the new HARP 2.0) and the Home Affordable Foreclosure Alternatives Program (HAFA).
HAFA is a government-sponsored initiative assisting all Home Affordable Modification Program (HAMP) eligible homeowners in avoiding foreclosure through a short sale or deed-in-lieu of foreclosure.
The program recently announced updates and changes that will take effect June 1st.
These changes will allow a greater number of distressed homeowners to seek assistance.
The major changes from March's updates to the HAFA program include:
- Extending the deadline for submitting for HAFA eligibility will be extended a full year, from December 31, 2012, to December 31, 2013.
- The removal of occupancy requirements. Previously, HAFA required homeowners to have lived in the property within the last 12 months.
- $3,000 relocation incentives will be limited to properties occupied by an owner or tenant at the time of the short sale.
- Mortgage payments will be allowed to exceed 31% of the homeowner's gross monthly income. This update will allow a homeowner to stay current on their mortgage and still qualify, minimizing the overall impact to their credit.
- Secondary lienholders may receive up to a maximum of $8,500, up from $6,000 previously.
- And one of the most dramatic changes: The Credit Bureau Reporting will be Account Status Code 13 (paid or closed account/zero balance) or 65 (account paid in full/a foreclosure was started), as applicable.
With these updates, a homeowner can be current on their mortgage, qualify for HAFA, continue to make their payments, and execute a short sale with minimum impact on their credit!
If you are upside down on your home…call me today. My direct line is 561.602.1258
Thanks For Reading…Steve Jackson
