What is Home Affordable Foreclosure Alternatives Program (HAFA)?
In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010 and ends on December 31, 2012.
Who is Eligible for the HAFA Program? Anyone who....
Lives in the property and it must be the borrower's primary residence, (not an investment property).
Has a mortgage loan that is a first lien mortgage and was originated on or before January 1, 2009.
Who is delinquent on the mortgage or default is reasonably foreseeable.
Has a current unpaid principal balance is equal to or less than $729,750 for one single family home.
It is important for home owners to understand that "eligibility" does not mean that you will be approved for the HAFA program. It simply means that you are eligible to be considered. Each HAFA file is reviewed individually based on lender and investor guidelines.
HAFA Program provides financial incentives for the Home Owners!
$3,000 for borrower relocation assistance;
$1,500 for servicers to cover administrative and processing costs;
Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
The HAFA Program is designed to assist in streamlining the short sale process.
Standard process flow;
Minimum performance timelines;
Standard documentation;
Utilizes borrowers financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis;
Allows the borrower to receive pre-approved short sale terms prior to the property being listed;
Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the short sale agreement;
Requires that borrowers be fully released from future liability for debts (no deficiency liability); and
Provides financial incentives to borrowers, servicers and investors and junior lien holders
What's the next step?
Contact Matthew Sipera REALTOR® and Certified Distress Property Expert (CDPE) today and let him discuss your needs to find out what your options are. You are NOT under any obligation to accept his real estate services by filling out the forms, contacting him, or receiving any information.
Please fill out the online seller's form by clicking on the Sell Your House button.
Matthew will contact you to begin discussing your options.
