In a bid to put a check on the rising number of foreclosure, the Obama Administration has come up with the Home Affordable Foreclosure Alternatives (HAFA) program. This program will offer new incentives to struggling borrowers and lenders to promote short sales i.e. sale of mortgaged homes for a price less than the outstanding mortgage balance.
The program is scheduled to begin from April 5, 2010. It promises to offer $1000 each to the investors owning first or second mortgages and the banks servicing those mortgages, if they agree to accept short sales and forgive the difference between the sales price of the house and the outstanding mortgage balance. The program also attempts to help homeowners by offering them $1500 in the form of relocation assistance.