Short Sales

HAFA

Here is are some of the keypoints:

• A borrower's reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months before certain dates in the HAFA process but may not have purchased another home.
• Other service agencies are not required to determine if the borrower's total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.
• Other service agencies are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii) Alternative Request for Approval of Short Sale, and (iii) a signed Hardship Affidavit.
• If an unsolicited borrower requests HAFA, the service agency has 30 calendar days to determine the borrower's eligibility and, if eligible, send the borrower the Short Sale Agreement.
• HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect.

The benefits of HAFA for the Seller continue to be:

• No deficiency judgment
• No seller contribution or promissory note
• $3,000 relocation payment to seller

Read the official HAFA Policy Update