HAMP, HAFA , HARP… What does it all mean?

7 Apr

Unless you have been in a coma for the last year, you know the government has been creating programs to help ease the burden of unmanageable home mortgages.  Although there are many scams and fraudsters looking for a way to take your money for foreclosure consulting, there are also legitimate resources and options to look into.

HAMP (the Home Affordable Mortgage Program) was designed to assist those who need mortgage modification, so the terms of the mortgage can be brought inline with what the homeowner can afford.  HAFA (the Home Affordable Foreclosure Alternatives program) just took effect two days ago (April 5, 2010) and it allows homeowners to explore short sale or deed in lieu of foreclosure if they don’t qualify for HAMP or if they qualified for a HAMP modification but missed two consecutive payments.

If you are looking for information on HAMP  or HAFA, there are several resources you may wish to look at.  We would suggest, among other resources, you start with the following:

  1. MakingHomeAffordable.gov — This is a legitimate government website that offers information on various programs, has an “eligibility” tool to help identify if you are a good candidate for modification, etc.  You may wish to start your research here.
  2. National Association of Realtors — The National Association of Realtors website offers some explanations for several of the current programs, such as the HAFA program.  Find information about the HAFA program (which took effect yesterday, April 5th) here.
  3. US Department of Housing and Urban Development (HUD) — HUD has an entire section of their website devoted to avoiding foreclosure.  If you are facing foreclosure, you may want to check out HUD’s resources and information, here.

Although there is plenty of information available to try to find your way through the maze of options between short sale, foreclosure, mortgage modification, and deed in lieu of foreclosure, it is difficult to find any resources that substitute for the advice of your attorney, financial advisor or accountant.  Be sure to seek advice and counsel as needed.

This blog entry is written by Brad Boyd, a Shareholder at Thomsen Nybeck. Brad is the chair of the firm’s Transactional Group, and his practice focuses primarily in Real Estate, Real Estate Brokerage, Business and Corporate law, and Wind Energy Law.  Brad provides legal advice, guidance, and representation related to risk management in a wide variety of real estate and business law matters.  He is counsel to the Minnesota Association of Realtors, many individual Realtors and brokerages, business clients and individuals.

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One Response to “HAMP, HAFA , HARP… What does it all mean?”

  1. 60minmortgaemod November 11, 2011 at 12:57 am #

    Excellent article. This is just the info on the topic that I was looking for! Thx!

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