PART 1 HAMP, HAFA, Short Sale: Alternatives to a Looming Foreclosure

Living with the threat of a foreclosure over your head would be enough to drive anyone into a panic.  As a Birmingham Alabama home owner, you need to know that you have options when it comes to skirting foreclosure. Three alternatives that are available to you are the HAMPHAFA and Short Sale of your Birmingham Alabama home.

First there is HAMP which stands for Home Affordable Modification Program.  This program is designed to keep homeowners in their homes by modifying the loan so that your monthly payments can become more manageable.  By lowering you payments, your home could become more affordable for you once again, despite the life changing situations that have occurred.

There are some criteria that must apply to you and you’ll find them below so it may be worth your while to consider this as an alternative to foreclosure.

Let’s take a look at what your situation needs to look like in order to qualify for a HAMP

First of all you must currently occupy the home as your primary residence.
• January 1, 2009:  You must have obtained your mortgage on or before this date.
• Mortgage payment/debt ratio:  Is your mortgage payment more than 31% of your monthly gross income?  If yes, you may qualify.
• The amount you owe on your home must not exceed $729,750.
• A financial hardship must exist and threaten to interfere with your ability to make your mortgage payments.
• You must be able to prove that your current income warrants consideration for a mortgage loan modification.
• Within the past 10 years, the following must apply:  No convictions for felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

If you can prove that you meet these requirements, you may be well on your way to qualifying for the Home Affordable Modification Program (HAMP).

Another alternative is the Home Affordable Foreclosure Alternatives (HAFA) Program. I’ll be talking about that in my next post so please be sure to return for more valuable information that may be helpful to you.  Even if you are not at risk of a foreclosure, someone you know may be, so be sure to pass this information along to them.