The HAFA (Home Affordable Foreclosure Alternative) program is important because it’s sponsored by the federal government, with the common goal of helping borrowers and an alternative way in avoiding foreclosure. A short sale or deed-in-lieu (DIL) is
the best choice for both the lender and the borrower because the home will maintain it’s value better when occupied, and the borrower gets to reduce their debt load with no deficiency judgement against them. If you were not able to get your loan modified, this is the best option for you since a foreclosure or bankruptcy can affect your credit for 7-10 years. In addition, there is no cost for the program and you will also receive a $3000 incentive at closing.
