Boston real estate blog readers are askin What is HAFA Lets answer this question. First HAFTA stands for Home Affordable Foreclosure Alternatives Program. Though the treasury department approved the HAFA program in 2009, it wasnt until April of 2010 that it went into effect. This program gives Boston real estate condo owners completing short sales or deed-in-lieu of foreclosures incentives while they avoid foreclosure on loans eligible under the HAMP program for modification. This lead to the next question What is the HAMP program

The HAMP program stands for Home Affordable Mortgage Program, which was instituted to help Boston real estate owners that are facing financial hardship to modify or refinance their mortgages. This helps Boston real estate owners to keep making mortgage payments that are manageable rather than lose their homes.

Here is an overview on HAFA

         Boston condo borrowers are required to be fully released from liability in the future in regards to their first mortgage. They do not have to sign a promissory note and no judgment is allowed regarding the deficiency. The borrower is also not required to contribute cash.

         Boston real estate owners have a financial incentives are provided such as $3000 relocation assistance to the borrower. Services may get up to $1500 to cover costs for processing and administrative duties while investors can receive up to $2000 if they allow up to $6000 of the proceeds from the short sale to go to 2^nd or 3^rd lien holders on 1 for 3 matching basises.

         HAFA complements HAMP as it provides alternatives for Boston real estate owners that are eligible for HAMP but still cant maintain the mortgage on their home.

         HAFA uses the information on the home owner that was previously collected for HAMP loan modification consideration.

         This allows Boston real estate owners to get preapproved short sales terms prior to listing Boston real estateincluding minimum acceptable sale price or net proceeds