Treasury Department Launches New HAFA Program

April 5, 2010 - PRLog -- Scottsdale, Ariz.—Today marks the first day that the Treasury Department’s deadline for implementation of the Home Affordable Foreclosure Alternatives (HAFA) program. Effective today, the Treasury’s contribution to the homeowner increases from $1,500 to $3,000, and the junior lien contribution increases from $3,000 to $6,000.

A tremendous increase in short sales is expected as the new legislation steers struggling homeowners toward short sales instead of foreclosure.

Loan Resolution, a company that acts as a vendor for banks implementing HAFA, said, “We found that a lot of short sale offers were being withheld from our clients so that they could be submitted to us under the new HAFA rules,” said Travis Hamel Olsen, chief operating officer of Loan Resolution Corporation. “There is definitely substantial interest from the public about this program—this gives them a graceful way to exit the property.”

The government is implementing HAFA to encourage short sales in order to reduce foreclosures and prop up the nation’s ailing real estate market. The new program is designed to speed up the short sales process and encourage struggling homeowners to avoid foreclosure.

“In speaking with junior lienholders, they have been very positive about the subordinate lien contribution increase from $3,000 to $6,000—a lot more short sales will get approved because of this,” added Olsen. “We are working with multiple top-five banks to assist them in reducing the blight of foreclosures in our neighborhoods across America.”

For additional information about Loan Resolution Corporation, please visit: www.LoanResolution.com.

# # #

About Loan Resolution Corporation:

Founded in 2005, Scottsdale-based Loan Resolution Corporation is the nation’s leading national Pre-foreclosure Asset Manager. The company partners with mortgage servicers to provide cutting-edge, scalable solutions that reduce the cost of loss mitigation departments and increase resolutions. LRC offers a variety of default services, with short sales being its core competency. LRC pioneered the Proactive Approach to Short Sales, and offers HAFA and other pre-approved short sale programs at part of its service offering.

For additional information about Loan Resolution Corporation, please visit: www.LoanResolution.com or call (480) 455-3506.