Many distressed homeowners often ask their short sale realtors if they should attempt to qualify for a Home Affordable Foreclosure Alternatives (HAFA) short sale or the Making Homes Affordable government program. Any decent short sale realtor will tell you that, yes, you should absolutely try to qualify for one of these programs and there are a few main reasons as to why.

If you do qualify for these programs, you are completely released from your mortgage debt by your lien holder; you won’t ever have to worry about your lien holder coming after you for the deficient amount; sometimes, if your deficiency amount doesn’t get fully waived, your lender does have up to seven years to come after you for that amount. If you qualify for this program, however, this isn’t something you will have to worry about. You also will receive up to $3000 in relocation assistance if you qualify for either of these programs. If you qualify for a HAFA short sale, the impact to your credit is less negative than a foreclosure or a traditional short sale.

In order to qualify for these programs there are a few key criteria that you have to meet. The property you are selling via short sale has to be your primary residence and you have to have lived there within the past year. You also have to have a proven financial hardship, no felony convictions in the last 10 years and your mortgage was obtained before 2009. If you are unsure if you qualify for the program, you should contact a Denver short sale realtor. By getting in touch with a short sale realtor, they can further answer your questions about the Home Affordable Foreclosure Alternatives program and the Making Homes Affordable government program and help you apply for them.