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DALLAS, TX -
New mother, Rosy Noorani, toured a McKinney home today that is up for sale. She says her growing family needs a larger house.
Noorani says because the homeowners recently reduced the home by about $125,000 and are willing to take less than they owe, that just might close the deal. "It was out of our price range, but not so much now".
That home is now selling under an old practice called, "short sale", but it is one the Obama Administration hopes to revive through a new program.
Home Affordable Foreclosure Alternatives or HAFA, is designed to help keep homeowners out of foreclosure by paying them to walk away. "These are not distressed properties, these are distressed homeowners and they are looking for help", says Dallas Realtor, Gina Branch.
Under HAFA, the government will give a homeowner nearing default $1,500 to "relocate". There is also another $2,000 available in incentives for lenders to help push the process along. Experts say short-sale can often be long and difficult to accomplish.
Mortgage broker, Tom Branch says he is glad the administration is stepping in to head off more foreclosure issues. He calls it a win-win for a lot of reasons. "The neighborhood isn't hurt as bad, the seller gets to get out of the house, the lender doesn't have to foreclose and the buyers gets a house that isn't run down".
But critics of the program say short-sale is ripe for fraud and forces taxpayers to pick up the tab for those who may have been irresponsible homeowners.
The program takes effect April 5th.
Noorani says because the homeowners recently reduced the home by about $125,000 and are willing to take less than they owe, that just might close the deal. "It was out of our price range, but not so much now".
That home is now selling under an old practice called, "short sale", but it is one the Obama Administration hopes to revive through a new program.
Home Affordable Foreclosure Alternatives or HAFA, is designed to help keep homeowners out of foreclosure by paying them to walk away. "These are not distressed properties, these are distressed homeowners and they are looking for help", says Dallas Realtor, Gina Branch.
Under HAFA, the government will give a homeowner nearing default $1,500 to "relocate". There is also another $2,000 available in incentives for lenders to help push the process along. Experts say short-sale can often be long and difficult to accomplish.
Mortgage broker, Tom Branch says he is glad the administration is stepping in to head off more foreclosure issues. He calls it a win-win for a lot of reasons. "The neighborhood isn't hurt as bad, the seller gets to get out of the house, the lender doesn't have to foreclose and the buyers gets a house that isn't run down".
But critics of the program say short-sale is ripe for fraud and forces taxpayers to pick up the tab for those who may have been irresponsible homeowners.
The program takes effect April 5th.
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