Temecula's Real Estate Blog

Will The “New” Government Program Save Real Estate Foreclosures?

Will the new government program help prevent real estate foreclosures?

Our beloved leaders have a new program coming out April 5^th. The idea of the program is that it set guidelines and offers cash incentives for homeowners, loan services and mortgage investors for processing and completing short sales for deeds-in-lieu of foreclosure. They have coined it HAFA, or HAMP, or HANK, or HAM SANDWICH…. or whatever cute little acronym they can come up with. It stands for Home Affordable Foreclosure Alternatives or HAFA (which is short for “it won’t work”).

For those on a lengthy European vacation or a prison term, a short sale is a process by which a homeowner can sell their home at its market value while the lien holder writes off the loss on the balance. Without this process, the only outcome for those who can no longer afford their home is foreclosure.