Changes to HAFA - Effective June 2012

By
Real Estate Broker Owner with Broadpoint Properties Cal BRE #01324959

hafa updatesThe Home Affordable Foreclosure Alternatives Program (HAFA) is a government-sponsored program aimed to provide additional alternatives to foreclosure. Aside from loan modification (the government’s HAMP program) and underwater refinance (the government’s HARP program), the Treasury has also provided options for distressed borrowers through short sale and deed-in-lieu of foreclosure.

Just like a small child that grows and changes, this program has also changed quite a bit since its inception just two years ago. In March of this year, the Treasury set out additional guidelines for short sale and deed-in-lieu of foreclosure through the HAFA program. Note that these changes are not required to be put into play by the mortgage servicers/participants until June 1, 2012.

Check out or download this handy chart in order to learn more about how HAFA (once a baby, and now a toddler) is going to be changing in a few short months.

 

HAFA Updates

 

(photo credit)

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  1. Michael Collins 04/19/2012 09:01 AM
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Topic:
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Short Sales Specialists
Short Sale Support Group
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Tags:
harp 20
hamp
short sale program updates
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hafa updates

Comments 10 New Comment

Rainmaker
1,147,511
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Put 40 years of experience to work for you
Lyon Real Estate

I think you meant to tweak the chart about the 31% ratio. That was eliminated for regular HAFA short sales last year. In many HAFA short sales the payments exceed 31% anyway. I think it's missing a word.

But the $8500 to junior lenders woo-hoo!!! Very happy about THAT! Also, it would seem that impending foreclosure doom has been removed so borrowers can now stay current.

April 20, 2012 07:50 AM
Rainmaker
1,147,511
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Put 40 years of experience to work for you
Lyon Real Estate

I just read the supplemental. It appears that if the homeowner no longer occupies the property at the time of the application for HAFA, the homeowner will not receive the $3,000 incentive. It also says the homeowner doesn't have to be delinquent and they can stay current on the loan, under Section 7.4, which is very oddly worded. By eliminating the $3,000, there is no reason to do a HAFA in California for a non-owner occupant.

April 20, 2012 08:05 AM
Ambassador
1,064,025
Melissa Zavala
Broker, Escondido Real Estate, San Diego County
Broadpoint Properties

Elizabeth: Clarified, yes I was referring to 7.4 (which is definitely oddly worded).

April 20, 2012 03:14 PM
Rainmaker
904,500
Bill Gassett
Metrowest Massachusetts Real Estate
RE/MAX Executive Realty

Excellent summary of how the HAFA program has changed Melissa. It is too bad more people don't qualify.

April 23, 2012 04:41 AM
Rainmaker
333,409
Dan Brudnok
REALTOR,e-PRO,ABR,GREEN,SRES,CSP
Keller Williams RE- Exton - PA License Number #RS225179L

Melissa,

Change is good....especially since the reason for the program is so important.

April 23, 2012 07:08 AM
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Melissa Zavala

Broker, Escondido Real Estate, San Diego County
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Broadpoint Properties