As of April 5, 2010....HAFA began!!! Already, I have two short sale clients enrolled in the HAFA program and we're actually having much success!! It's interesting to note that 90% of mortgage servicers are participating in this program that provides a viable solution for troubled homeowners (owner occupant only - not available for investment property). The main focal points of the HAFA program are as follows:
Available for those who are eligible for HAMP, but are unable to keep their current residence. Borrowers who previously enrolled in the HAMP program, but were unable to keep their mortgage payments or fell behind in two payments are eligble.
Information previously provided under HAMP program can be used for HAFA. Do you actually mean "information sharing" between two different banking departments???? Yippe Skippee!!!!
Pre-Approved Short Sale Pricing and Terms. Now a publicized "pre-approved" short sale will ACTUALLY be pre-approved!!!! Sellers and Realtors will now know exactly how much servicers will take PRIOR TO LISTING!!!!
Requires Full Release Of Debt for Borrowers. Yes!!! You heard me correctly, even secondary lienholders receive INCENTIVES to release borrowers from owing any deficient amounts!!!!
Standardized Forms and Procedures. No more guesswork on the policies and procedures of each individual servicer. All forms are standardized and available on Realtor.org site or through the HUD website.
INCENTIVES, INCENTIVES, INCENTIVES: Okay, here's the good part....Sellers receive $3000 for relocation assistance, Loan Servicers receives $1500 for administrative costs, Junior Lien Holders receive up to $6000 for release of liability....Heck, even Investors receive up to $2000 in matching funds for allowing concessions to junior lien holders!!!
Requires that all servicers who are currently participating in HAMP to participate in HAFA.
One important factor to note is that HAFA is not available on FHA and VA Loans. FHA currently has their own pre-foreclosure sales program, which also ROCKS!!!