What is an HAFA Short Sale?
The United States Treasury Department proposed the Home Affordable Foreclosure Alternative (HAFA) short sale program on November 30, 2009, with new incentives for homeowners, lenders, and servicers who work through the short sale process. The Obama administration created this program to encourage lenders to prevent foreclosures and intice Short Sales. This new program, HAFA, impacted on April 5, 2010. Not only are financial incentives given, but the HAFA program limits the comeback time a bank is allowed and also compels that the lender waives their right to engage in a deficiency judgment. If you would like to know if the Home Affordable Foreclosure Alternative is as rewarding as it sounds contact Starting Point Home Solutions!
To qualify for HAFA, certian requirements must be met:
- HAFA is not relevant to FHA or VA loans, those loans have separate guidelines.
- The property must be the homeowner’s key residence. This can involve certain vacant properties if the homeowner has only just moved 100 miles or more for employment intentions.
- The loan must be the first mortgage on the premises.
- The loan must have commenced before January 1, 2009.
- The homeowner must be overdue in payments or can anticipate default in the near future.
- The unsettled balance cannot surpass $729,750. This quantity can be exceeded in some cases for two to four unit dwellings.
- The borrower’s monthly mortgage payment must be more than 31% of the home owner’s gross income.
To see how Starting Point Home Solutions can help you secure a HAFA Short Sale, click here or call toll free at (636) 573-1500 for a consultation.