The fact that the homeowner is prohibited from receiving any doesn’t change that fact that other entities do receive proceeds. For example: the mortgage company, the tax assessor, HOA, title companies, etc. The danger is when agent or buyers cut deals with homeowners to “kickback” some money.
As far as HAFA and “qualifies even if current on mortgages”. It remains to be seen.

The scariest part and in our opinion the most deceptive parts about these programs are:
1. Bottom line is the investor has the final sale and if the rate of return for the investor is to foreclose then they simply deny the approval.
2. The programs are “Guidelines” there is no apparent remedy for the homeowner is the bank doesn’t assist them or tell them why they were denied.

Also please explain: “anyone eligible for the Home Affordable Foreclosure Alternatives program (HAFA) would not be eligible for a new FHA-insured mortgage”
My understanding of HAFA is that the homeowner qualifies even if current on mortgages. What am I missing?

Thanks!!