HAFA Short Sale Help in Perry County

Do you know what the HAFA program is?This is the Homes Affordable Foreclosure Alternatives Program that was started in 2010 and is funded by the federal government. Its purpose was tohelp lenders and homeowners by managing the short sale procedure.The HAFA program is a suitable alternative for homeowners whocannot keep their property through the Homes Affordable Modification Program (HAMP).HAFA was created to help homeowners settle their mortgage debt so they don’t have to go through a foreclosure.

The HAFA Short Sale Program will end on December 31, 2012. Here are the conditions for eligibility into this program.

HAFA Eligibility and Requirements

• Your home value is less than what you owe the lender
• The loan was taken out on or before January 1, 2009
• The loan is a 1st lien mortgage
• You are going through financial trouble and can’t afford the current monthly payment
• You are over 60 days late on your mortgage payment
• The current unpaid amount is equal to or less than $729,750
• The borrower’s total monthly mortgage payment is more than 31% of borrower’s gross income
• Borrower has cash reserves less than $5,000 or less than three times the current mortgage payment

HAFA Basic Overview

• Is related to 1st Lien Non-GSE Mortgages
• Takes borrower’s financial information through HAMP
• Sets ceilings on lender response time
• Monetary incentives are given to servicers, borrowers and investors
• Lender gives up the ability to pursue deficiency judgment
• Caps claims of subordinate lenders

HAFA Incentives

• Borrower gets a relocation expense of $3,000
• This expense is then cut from the total sale proceeds at closing
• Borrower cannot be charged any processing fees or expenses
• $1,000 to Servicers for administration and processing fees
• $1,000 to Investors for subordinate lien holder payoff
• For every three dollars spent to release liens, buyer or investor is reimbursed on dollar and ceiling set at $3,000
• HAFA has less negative impact on your credit score than a conventional short sale or foreclosure

If you have more questions regarding the HAFA program, please contact our team. We can help you figure out your options while guiding you through the process.