Treasury Department Launches New HAFA Program
Scottsdale, Ariz. – Apr 05, 2010 – Today marks the first day that the Treasury Department’s deadline for implementation of the Home Affordable Foreclosure Alternatives (HAFA) program. Effective today, the Treasury’s contribution to the homeowner increases from $1,500 to $3,000, and the junior lien contribution increases from $3,000 to $6,000.
A tremendous increase in short sales is expected as the new legislation steers struggling homeowners toward short sales instead of foreclosure.
Loan Resolution, a company that acts as a vendor for banks implementing HAFA, said, “We found that a lot of short sale offers were being withheld from our clients so that they could be submitted to us under the new HAFA rules,” said Travis Hamel Olsen, chief operating officer of Loan Resolution Corporation. “There is definitely substantial interest from the public about this program—this gives them a graceful way to exit the property.”
The government is implementing HAFA to encourage short sales in order to reduce foreclosures and prop up the nation’s ailing real estate market. The new program is designed to speed up the short sales process and encourage struggling homeowners to avoid foreclosure.
“In speaking with junior lienholders, they have been very positive about the subordinate lien contribution increase from $3,000 to $6,000—a lot more short sales will get approved because of this,” added Olsen. “We are working with multiple top-five banks to assist them in reducing the blight of foreclosures in our neighborhoods across America.”
For additional information about Loan Resolution Corporation, please visit: www.LoanResolution.com.