Question by careful grl: What is the HAFA program for short sales and why is it called “Cash For Walkers”?
Is it true the government is actually paying people to walk away from their mortgage or do a short sale to get out of their home? Is it a good idea and will it work? Thanks!
Best answer:
Answer by My Take on It
They are not paying individuals
I believe they are paying the banks to shorten the process of short sales.
What do you think? Answer below!
HAFA, known popularly as “Cash For Walkers” does pay CASH to homeowners and gives them a chance to WALK away clean from their home and their mortgage debt. The Cash For Walkers name is inspired by the successful Cash for Clunkers program and the upcoming Cash For Caulker program.
In an effort to end the foreclosure crisis, the Obama administration has been trying different things to keep struggling owners in their homes. Now it will actually help them sell at fair market value and pay them cash to walk away with!
The Cash For Walkers program will help delinquent borrowers who have not been helped by a loan modification program to sell their houses through a short sale. Lenders may accept that arrangement and forgive the difference between the sale price of the home and what they are owed.
According to the Cash For Walkers plan, the servicing lender will get $ 1,000. If there is a second loan, up to $ 1,000 can go to the 2nd mortgage holder and the seller will walk with $ 1,500 cash. Better yet, lenders will not be able to pursue the borrower for a deficiency judgment.
It might not be for everyone, but it may be worth checking into… if you know anyone looking to make a clean break from their mortgage trouble, tell them to check out Cash for Walkers.