Investing in Real Estate :What is HAFA and How Can It Help Distressed Home Owners?

Article Summary:

Article Content:
Short and sweet.  HAFA is an acronym for Home Affordable Foreclosure Alternatives.  It is so important that we know how to advise our clients in this changing market.  With 1 out of every 7 home owners not paying their mortgages and 1/4 of home owners under water in their mortgage situation, we have to be knowledgeable and prepared to advise our clients, friends, family members and, in some cases…ourselves.

Look around your neighborhood. 1 in 7 home owners are not paying their mortgage in your own neighborhood and the banks are halting foreclosures due to legal issues in the foreclosure process.  They are fearing class action suits which, I can only imagine how many there will be.  People are in trouble everywhere and this new announcement of halting foreclosures may give non-paying home owners a false sense of security.   They may end up being surprised by an eviction without any warning.  This foreclosure market is so volatile.  We are treading virgin ground which can shift at anytime.

I wouldn’t place any security in the fact that owners haven’t received foreclosure notices.  If they  haven’t paid, they haven’t paid.  You have the ability and skill to help these people when they feel like there is nowhere to turn.  Knock on doors; especially in overbuilt outlying areas.  Offer your support and compassion.  Talk about the short sale or foreclosure listing down the street and see if they have anyone they would like to be their neighbor.  You will be surprised how many people you can assist.  Don’t look at the dollars you may earn, look at the good will you will share.  You are the professional and you have great knowledge to share in this evolving market.

We can’t just assume a short sale or foreclosure is the best route for all home owners.  They need legal and financial advice.  I feel you should have a contract that states that you have given them 3-6 contacts for legal and financial advice, and make them sign it.  You never know what will come out of this.  We already have a lot of brokerages and agents paying legal fees to keep their licenses due to this situation.  

 Here is a link to the HAFA information for real estate agents.  Hope it helps. http://www.cdpe.com/hafa/short-sale/agents

———————