HAFA – Home Affordable Foreclosure Alternatives…. the latest program designed to try and deter foreclosures. There has been a lot of buzz about this program, so I wanted to break it down and give you some of the details. Keep in mind that we have a Short Sale Solutions seminar this evening here at Cornerstone Mortgage Company, free of charge, open to any seller who is considering a short sale, facing foreclosure, or just not sure what to do with a home they can’t afford. You can call 952-808-0042 to register, but for now, here is the nitty-gritty:
- HAFA program starts this coming Monday, April 5th, 2010.
- Provides short-sale alternative to foreclosure
- More than 75% of current mortgages qualify for short-sales under the new guidelines
- Short-sales will help protect property values where as a foreclosure hurts property values
- Documentation has been standardized
- lenders will determine up front at listing, what value they will accept in an offer
- Mortgage servicers will receive $1,000 from TARP funds for each successful short sale
- Sellers will be eligible for a $1,500 relocation assistance check at closing
- Short sales will be given 120 days minimum to sell the home
- During that 120 day time frame, foreclosure proceedings can continue, but can not be finalized during that time.
- During the time frame when the home is on the market, lenders MUST respond fully to a ‘request for approval of short sale offer within 10 business days
- Second mortgages will receive an incentive for approving short sale
- Program will remain in effect until December 31, 2010
As I mentioned at the beginning of this post, we are holding a Short Sale Solutions seminar tonight at 6:30 in our office in Burnsville. Click here to register or call 952-808-0042 to register.
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[...] This post was mentioned on Twitter by MN HomeLoan Partners. MN HomeLoan Partners said: What is this new HAFA program? http://bit.ly/b6jo0J [...]
[...] the nation. GSE loans were excluded from the Treasury’s Home Affordable Foreclosure Alternatives (HAFA) program’s guidelines, which went into effect in April. HAFA, which streamlines the Short Sale [...]
Foreclosure hurts property values pretty badly. I find the best value for money comes from auctions mostly. On another note, these short sales are becoming and ever more popular alternative to foreclosure.
[...] the nation. GSE loans were excluded from the Treasury’s Home Affordable Foreclosure Alternatives (HAFA) program’s guidelines, which went into effect in April. HAFA, which streamlines the Short Sale [...]