How will the Home Affordable Foreclosure Alternatives program affect my credit?
When you enter into a Home Affordable Modification, the negative affect on your credit will be less severe than if you sell your home in a HAFA short sale or go through a foreclosure—as long as you make your modified payments on time each month. Although a short sale will have a negative effect on your credit, by completing this transaction, you may qualify for financing for a future home sooner than if you allow your home to go through foreclosure. While we work with you to complete a short sale, we will continue to report the status of your account to the major credit reporting agencies. If a short sale is completed on your property, we will report that your loan was “paid in full for less than the full balance.” You should only consider a short sale after you’ve explored all other options, including modifying your loan. Please visit our Loan Assistance Solutions page for a complete list of options you may want to consider. You should contact a tax professional to gain an understandi
