Details of HAFA
Home Affordable Foreclosure Alternatives (HAFA) was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways:
- Compliments the Home Affordable Modification Program (HAMP) by providing viable alternatives for borrowers who are HAMP-eligible
- Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis
- Allows the borrower to receive pre-approved short sale terms prior to the property listing
- Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement
- Requires that borrowers be fully released from future liability for the debt
- Uses standard processes, documents and time frames
- Provides financial incentives to borrowers, servicers and investors
HAFA provides financial incentives as follows:
- Financial incentives for lenders participating in the program include a $1,000 servicing bonus
- Homeowners can receive up to $1,500 in relocation assistance (which, in some cases, may classify as taxable income) after a short sale or deed-in-lieu has been executed
- Lenders pay all servicing fees - homeowners suffer zero out-of-pocket expenses
If you (or someone you know) are a homeowner looking for answers, or would like to determine if you qualify for HAFA, contact me at 303-942-0648. I'm here to help.
Sources: HousingWire “Treasury to Announce New Program to Avoid Foreclosure” (2009):
http://www.housingwire.com/2009/10/12/treasury-to-announce-new-program-to-avoid-foreclosure/
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Shelli Dore
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