HAFA - Government Short Sale Guidelines
Government Guidelines
Home Affordable Foreclosure Alternatives (HAFA)
Obama program to push lenders to back short sales
In April 2010, as foreclosure prevention efforts were struggling to make an impact, the Obama administration launched the Home Alternative Foreclosures Alternative (HAFA) program to encourage lenders to allow distressed homeowners to sell the property for less than what they owe on the mortgages.
Earlier Government efforts were focused on mortgage relief, the Home Affordable Modification Program (HAMP). See www.MakingHomeAffordable.gov. But the latest program reflects a growing realization that many troubled homeowners cannot qualify for HAMP or that many would rather move on and cut their losses. So officials are focusing attention on efforts to ease borrowers our of their home without the stigma of a foreclosure.
To read the details concerning the HAFA program go to https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf
A quick summary of eligibility and HAFA highlights:
- Owner occupied
- Loan originated prior to 2009
- Loan amount <$729K
- Lenders are intended to release borrowers from all liability upon approved short sale
- Lenders may provide up to $3000 relocation funds to borrowers
- Program includes specific timelines intended to streamline process
By clicking the link you can watch our short YouTube video on this subject!
