Alternative Programs for Debt Relief

by | March 14, 2017 | , , |

Alternative Programs for Debt Relief

Fortunately, when a debtor is having difficulty making their monthly mortgage payments, there are options out there than can help secure a bright future with a fresh start.  There are options within the short sale process and the deed in lieu of foreclosure process to receive relocation funds from the lender including basic relocation assistance and/or cash for keys.

HAFA Program

HAFA is the Home Affordable Foreclosure Alternatives Program.  The program works in relation with a short sale or a deed in lieu of foreclosure to provide the homeowner with funds for relocation.  Often times, this amount received by the homeowner is for $10,000.  This assistance can greatly improve your ability to secure a new home for you and your family.  In addition, HAFA relieves you of the possibility of facing a deficiency judgment filed against you by your lender so you can breathe easier knowing the debt has truly been relieved.

Cash for Keys

The cash for keys program works in relation with the deed in lieu of foreclosure option.  The lender who holds your mortgage (trust deed) will offer you a dollar amount to vacate your property within a certain time frame by deeding the property to them.  This agreement should be put into writing to insure you receive your relocation funds from the lender.  It is an exchange program, you are giving keys and a deed and the lender is giving relocation funds to you.

How do I Qualify?

Both of these relocation assistance programs are for homeowners in distress and facing foreclosure.  If you are behind in payments, facing a financial hardship or your home is upside down, you may qualify for a short sale to sell your home for less than what you owe.  In the case of many short sales, the HAFA program can provide your assistance funds for relocation. Specifically to qualify for HAFA, your mortgage must have been signed on or before January 1, 2009.

Where will I go?

With these assistance programs, you receive funds for relocation.  The amounts can vary but often times can extend all the way up to $10,000. This can offer some peace of mind when considering relocation.  You will be able to afford a down payment and rent on a new home by using your funds appropriately.  There are many properties available for rent and even rent to own options.  It can be very overwhelming to find the right property, but remember we can help you do that as well.  We have relocation specialists that can find the affordable property you need in the location that best suits you. Use those funds to your advantage on a new start for you and your family. If you would like to discuss your options, please give us a call at 949-413-7911 or contact us.