Is your property in a foreclosure action or are you simply thinking of walking away from a property you owe more for than it’s worth. If so, you have the right to know your options.  A short sale is when you approach your bank and other lien holders and ask them if they would release their lien(s) on you property for less than full payment.  That’s it in a nut shell.  Always get a FULL release of the debt but realize that there may be income tax due on any forgiven debt.

Are you aware that the United States government is on your side? It’s true. They have created powerful new programs to assist you in your time of need. For details on these programs visit the web site https://makinghomeaffordable.gov/ .

The Home Affordability Modification Program (HAMP). The goal of HAMP is to MODIFY your loan so that your monthly payment of principle, interest, taxes, insurance and HOA fees is less than 31% of your monthly income. HAMP is a modification of your loan.

The Home Affordable Refinance Program (HARP). Some homeowners may be able to pay their mortgages on time, but are not able to refinance to take advantage of today’s low interest rates perhaps due to a decrease in the value of their home. HARP assists homeowners whose mortgages are current and held by Fannie Mae or Freddie Mac REFINANCE into a more affordable mortgage. HARP is a refinance of your loan.

The Home Affordable Foreclosure Alternatives program (HAFA). The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure. With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe. HAFA is basically a pre-approved Short Sale of your property which if unsuccessful will ned in a Deed in Lieu of Foreclosure on your property.