You may have heard about short sales already, but if you live in Maryland you have another option open to you: Maryland HAFA Short Sales. HAFA or Home Affordable Foreclosure Alternatives is a program for those who want to avoid the foreclosure process. It differs from the popular HAMP program where you can get assistance to lower their monthly mortgage payments. The Maryland HAFA Short Sales program is for those who are near losing their home and want to settle their debts.
How to Qualify for the Maryland HAFA Short Sales Program
Since HAFA is a government programs, you have to meet certain criteria to get assistance:
- Your mortgage originated on or before January 1, 2009. If you signed the papers on the mortgage after this date, you won’t be able to qualify for the Maryland HAFA Short Sales program.
- The Home is your main residence; if this house is a rental property or a vacation property that you do not reside in more than six months out of the year, you won’t be eligible for the Maryland HAFA Short Sales program.
- You must be delinquent or be facing a default and/or foreclosure on your loan imminently (in the very near future).
- You must have unpaid principal debt balance (the original debt minus interest) less than $729,750 for a single unit property; so you can’t use the Maryland HAFA Short Sales program to save an apartment complex you own, for example.
- Your mortgage payment(s) exceed 31% of your gross (before tax) income.
If you meet all of these criteria, a Maryland HAFA Short Sales mortgage modification might be in your future. As long as your loan wasn’t owned or guaranteed by Fannie Mae or Freddie Mac and isn’t a second mortgage, you should qualify. But what are the benefits of a Maryland HAFA Short Sales mortgage modification?
Benefits of Maryland HAFA Short Sales Program
The Maryland HAFA Short Sales program has many benefits like helping you avoid foreclosure and salvaging your credit. Short sales can take a long time, but the Maryland HAFA Short Sales program gives lenders a $6,000 incentive to accept your offer and help you avoid foreclosure. Almost every major lender is a participant in the program, so your lender may be willing to go forward.
In some cases you may even be eligible to receive a $3,000 bonus for selling your home through a short sale under the Maryland HAFA Short Sales program. The program also prevents a deficiency judgement against you once the short sale is complete; a deficiency judgment is when a bank takes you to court for the difference between what you owe and what the house sells for under a short sale. You’ll be able to rebuild your credit and your life, avoid foreclosure and avoid the ax coming down on you with the banks trying to recoup their losses.
The Maryland HAFA Short Sales program is there for homeowners who need it; fill out my Maryland HAFA short sales information form and see what it can do for you.