U.S. Treasury Expected to Help Prevent Foreclosures

US Treasury

The U.S. Treasury is expected to join the ranks of other federal agencies launching programs to help homeowners avoid foreclosure. The official announcement was due out the week of October 19, 2009. However, some information was pre-released at the recent MBA convention.

The Treasury has named the foreclosure avoidance effort Home Affordable Foreclosure Alternatives (HAFA). (Like they hafa help, I guess.)

The primary objective of HAFA is to help homeowners avoid foreclosure. They want to do that to prevent the decimation of communities due to too many empty or abandoned houses  in the area. HAFA is expected to provide incentives to mortgage servicers, borrowers and investors by encouraging short sales or deeds in lieu of rather than foreclosure on the property.

With incentives in place to help stimulate interest in the program, prevention of foreclosures may seem imminent, but the HAFA program is also expected to simplify the process for lenders to participate in alternatives such as short sales and deeds-in-lieu.

Simplifying the process should encourage more mortgage servicers and borrowers to take advantage of the HAFA. It’s also expected to make the process more fair and equitable through standardization of documentation and timeframes associated with short sales and deed in lieu.

Those people who are still in their homes and paying on time may not be feeling gleeful about being better off than their neighbors. I say this because of the numbers of people I see accelerating their mortgage debt and paying off their homes years sooner than they have to. One has to think a little bit of that motivation is the contagioon of fear massive foreclosures exude.

Mortgage acceleration software makes paying off one’s home earlier easier by providing prompts and accountability through Internet automation.

Leave a Reply