Hafa Short Sale Program Now Pays Sellers $3,000!

April 13, 2010 - PRLog -- LINCOLN, NE – New Paradigm Mediations.  On April 5, 2010 the U.S. Treasury Department launched the Home Affordable Foreclosure Alternatives (HAFA) program to help underwater borrowers struggling to sell their homes to avoid foreclosure.  The HAFA program provides cash incentives to borrowers who utilize a short sale or deed-in-lieu to avoid costly foreclosures.

A short sale occurs when a mortgage lender agrees to allow a borrower to sell their home for less than the full payoff of the mortgage loan.  Under the new HAFA rules, the lender must also agree to release the borrower from any deficiency liability, and accept the short sale proceeds in full satisfaction of the mortgage loan.

A deed in lieu of foreclosure is a transaction in which the borrower avoids foreclosure by simply signing over a deed to the lender, and relinquishing all interest in the mortgaged property.  This saves the lender the time and expense associated with lengthy foreclosure proceedings, and allows the borrower to minimize the damage to their credit rating, avoid the public stigma of a foreclosure, and get out from under the mortgage debt, since the HAFA program also requires the lender to accept the deed-in-lieu in full satisfaction of the mortgage loan.

Additionally, the Treasury Department made last minute changes to the program on March 26, 2010, just days before its implementation, which raised the amounts of the incentive payments proposed in the plan.  Eligible borrowers who utilize a short sale or deed-in-lieu to avoid foreclosure now receive $3,000 in relocation expenses, instead of the $1,500 proposed in the original plan.

New Paradigm Mediations, a company that works with homeowners, real estate agents, lenders and mortgage servicing companies to arrange short sale and deed-in-lieu transactions provided this information in a press release issued just moments ago.  “This is outstanding news for homeowners who owe about what their home is worth or more than the home is worth, and are struggling to keep up with payments.  A short sale or a deed-in-lieu are two practical solutions available to borrowers, and the new HAFA program streamlines the entire process, and is a huge step in the right direction toward solving the country’s foreclosure crisis.”

It is estimated that 90% or more of the nation’s mortgage lenders are participating in the HAFA program, and it is not difficult to qualify.  To find out if you are eligible, or receive assistance with a short sale or deed-in-lieu transaction, visit New Paradigm Mediations’ website at: http://www.NewParadigmMediations.com

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About New Paradigm Mediations: The nation's leading HAFA short sale and deed-in-lieu loss mitigation firm. New Paradigm Mediations works with homeowners, real estate agents, lenders and mortgage servicing companies nationwide to negotiate short sale and deed-in-lieu transactions as options to avoid foreclosure. The company provides loss mitigation negotiations and services, and specializes in the new HAFA short sale and deed-in-lieu program. Call toll-free (877) 522-5005 or visit their website at http://www.NewParadigmMediations.com