For those of you who are thinking you might short sale your home, you need to know about HAFA, Home Affordable Foreclosure Alternatives.

This is another attempt by the Obama administration to stem the tide of foreclosures, thus far with poor results.

Basically, the program will give the home owner $3,000 to encourage them to stay in the home and short sale rather than foreclose. It gives the bank $6,000 if they short sale rather than foreclose.

If you are thinking to short sale, let’s talk. Thus far this program has not been working. It has doubled the paperwork required to short sale and it has slowed down a process which is already taking too long.

I am hopeful that they will work out the kinks. But it is more likely that the market will clear of short sales and foreclosures before that happens.

Learn more at this Arizona Republic Article.