What is HAFA?
Home Affordable Foreclosure Alternatives (HAFA) is a government-sponsored program that helps homeowners who are experiencing difficulty in selling there homes. Home owners can receive benefits or incentives that will help them take advantage of either a short sale. The home owner will sell their home for less than what they owe on the property and the lender will work with the homeowner to approved a set of terms agreed between the two entities.
If someone has tried to be approved under the HAMP program (Home Affordable Modification Program) and has fallen sort of approval, they can agree to take the short sale option.
The HAFA program speeds up the ability of the homeowner to list and sell their home because the lender already knows your financial situation and understands that you will not be able to make your monthy payments, therefore, you need to list your home and complete a short sale.
The short sale approval will be approved quicker since the lender already has your information and has denyed you for loan modification. YOu will have the option to sell your home under the short sale solution. YOur short sale will be Pre-approved and all that is needed is a qualified buyer.
If the home owner agrees to the short sale terms, they will be fully released from future liability for the first mortgage debt. Additionally, they can receive up to $1500 dollars for relocation assistance.
Servicers and investors can also recieve financial assistance through the program for processing fees, administarative fee, and other fees as detailed in the program.
The program official will kick off on April 5th, 2010 and will end on December 31st, 2012. Many say that if the program is successful, it will probably be extended.
To apply for the HAFA program, you can contact your bank and try to get a loan modification approval. If you are denyed for the approval you can ask to be part of the HAFA Program. If you are approved for the program, make sure it is in writing. Contact us and we can help you get started in selling your home. Always, read the details of what you are signing when you receive your HAFA program agreement/contract.
If you become approved for the program, you can work with one of our seasoned real estate professionals to start listing your home and complete the short sale.
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HAFA Qualifications:
Not everyone will qualify for the HAFA program. You must own a home that was purchase before 2009. The home must be your primary residence. You must have gone thru the process of loan modification or foreclosure prevention.
1. The amount of money you own on your home must be less than $749,750 on the first trust deed. (Do not include the total of your 2nd mortgage).
2. You must have got your current mortgage before January 1st, 2008.
3. Your current mortgage payment including principle, interest, taxes, insurance, homeowners insurance, homeowners association dues, etc. must be over 31% of your present income.
4. Your home must be a primary residence.
If you answered "YES" to these questions, you are more than likely able to meet the requirements of this program.
Call us if you are not sure. We can help you to determine the actual results.
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Borrrowers are fully released from future libility for the first mortgage debt within 10 business day from the date the servicer receives the sale proceeds, which means that no deficiency judgement or cash contribution is required by the homeowner. The lender will not have the seller sign a promissory note for any debt.
The servicers will set a monthly mortgage payment that the seller will have to pay while the home is being sold. This payment will not exceed 31% of the borrowers gross monthly income. Like any other loan modification, all standard documents and timeframes agreed between the lender and seller while the home is being sold under a short sale agreement.
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