Are you living in the Cape Coral or Fort Myers area and facing the hard knocks of economic distress? Are you burdened with the dilemma of how to stay in your home or get out of it with the least amount of damage?
If you find yourself saying yes to any of these questions…there’s still hope. There are a couple of programs available to right now to homeowners who are finding themselves in these financial hardships. One of which is called HAMP or Home Affordable Modification Program which gives families a second chance by modifying their mortgage so that they can afford to stay in their home. This is something we always recommend to our clients before we even begin to look at the option of a short sale. But even with the loan modification, there are still a lot of families who won’t be able to afford their mortgage payments. So now these families are faced with the option to either A put the house up for a short sale or B let the home go into foreclosure.
The Treasury Department has rolled out a new program to streamline the process of a short sale for families who qualified for the HAMP program but still couldn’t afford to make their mortgage called the Home Affordable Foreclosure Alternative or HAFA. The way HAFA helps streamline short sale transactions, are by providing a uniform process and standard forms as well as offer certain incentives to homeowners and lenders to execute the process such as a $3,000 check at closing to the seller to help with moving expenses.
Sevicers who participate in HAMP are also required to see if you qualify for a loan modification before they decide if you qualify for HAFA. The basic qualifications for HAMP are:
The property has to be your primary residence
Your loan must have originated before January 1 2009
Must be a delinquency of default on your mortgage
Your principal balance may NOT exceed $729,750 (limit is higher for 2-4 unit dwellings)
Plus, your total monthly payment must exceed 31% of your gross income
Even if your within the perimeters of these guidelines the lender still has to look at every individual case and consider the particular circumstances of each one. So not everyone will qualify, and sometimes not by fault of their own. Sometimes the owner of the loan has rules and regulations that prevent your home from being eligible. That’s why it is important to work closely with the servicer who represents the lender who owns your mortgage and a qualified agent.
To learn more about these programs or if your just interested in searching for a home contact me today!!!
Call 239-699-4913 or send me an email at josem@capecoralhomes4sale.com
