Phoenix, AZ -- (SBWire) -- 04/30/2014 --Money is tight for lots of people, and some of them are facing foreclosure on their homes because of it. Many may not be aware of the affordable foreclosure alternatives they have to stop this process. From talking with one’s lender to asking the government for help, there are many choices a homeowner has to keep his house. Credit-yogi.com is here to share its knowledge of this topic, including:

- HAFA
- Short Sale
- Deed-in-Lieu
- Home Affordable Refinance Program

Home Affordable Foreclosure Alternatives (HAFA)
Before a homeowner can apply for HAFA, he must understand it, so the response to “What is HAFA?” is important. This government-sponsored program offers homeowners two ways to stop foreclosure; a short sale and a Deed-in-Lieu of foreclosure. Eligibility requirements for both HAFA and HAMP are similar, making it fairly easy to apply them. Some are having a debt-to-loan ratio of not more than 31% of the gross household income; ascertaining that the house is the primary residence; and not owing more than $729,750. The borrower must also have a documented financial hardship.

Explaining the HAFA Short Sale
Of the two HAFA options, the HAFA-approved short sale is the better choice. A standard short sale occurs when the lender agrees to a selling price for an individual’s home and puts a portion of the proceeds toward the total balance of the mortgage. The financer can then pursue the homeowner for the rest of the balance due. The process of the HAFA short sale is slightly different in that when the home is sold for the agreed-upon price, it eliminates any balance and the loan is paid in full.

Deed-in-Lieu of Foreclosure
The deed-in-lieu of foreclosure is the least advocated choice for homeowners. It works like this: The lender agrees to accept the deed to the home, which the owner voluntarily surrenders, rather than going through with a foreclosure process to obtain the home’s title. There must not be other loans or liens against the property. Eligibility requirements for a deed-in-lieu are the same as for the HAFA short sale qualifications; however, Credit-yogi.com strongly suggests that this not in the best interests of a homeowner and should be thoroughly considered before agreeing to it.

HARP
Similar in purpose to both HAMP, which modifies (changes) the terms of a mortgage, and HAFA, which is there for those looking for the short sale, HARP is another good option to halt foreclosure. Because many lenders have unethical short sale tactics, utilizing HARP is often a wise choice. To qualify for HARP, one’s mortgage must be owned by Freddie Mac or Fannie Mae, and he must be “underwater” in his loan. HAFA may, indeed, be a homeowner’s best solution to foreclosure, as it may give him up to $3,000 to help with relocation expenses, among other benefits.

About Credit-yogi
Credit-yogi.com was established in 1999 to provide correct, quick answers to the financial inquiries of consumers. Since then, it has consistently achieved this goal. For a free initial consultation, dial 866-964-9644.