Short Sale, Foreclosure and Strategic Default

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Sunday, April 25, 2010

HAFA Short Sales

HAFA is it is a government program subsidized home affordable foreclosure alternatives program.

Under HAFA, a participating lender will pre-approve the terms of a short sale and live the borrower evry four months to market and sell the property using a licensed real estate professional.

To be eligible for the program but property must be in the borrower's principle residence the loan must have picked up  originated before 2009, it must be a first or senior loan, the loan must be $729,750 or less. The borrower must be eligible and able to complete a loan modification under the home affordable modification program. Finally the property must be a single family home. 2 to 4 unit properties may be eligible for the home affordable mortgage program. Check me rules. For more information on HAFA Short sales please go to www. upsidedownrealestate.com. 

 

Financial Incentives

The government is giving incentives to the lenders to pay $3000 towards the borrower's relocation expenses. The government is also paying $1500 to the loan servicers for each successful short sale and one dollar to the investor for every two dollars paid to extinguish Junior lens up to $2000 and not to exceed 6% of the unpaid balance.

This program announced in December 2012.

This is how the program is supposed to work in theory. So far we have seen Bank of America preapproved to of our short sales. However they were not able to provide us with a short sale price. They seven we should call back in about 10 days.

 

Procedures

step one - lender evaluates lower for a loan modification under the home affordable mortgage program.
Step two - lender evaluates borrower to complete modification or short sale.
Step three -  lender issues short sale agreement.
Step four -  Barro listen property for sale using a licensed real estate.
Step five - borrower in agent license and so property.
Step six  - borrower borrower submits to lender a request for short sale approval steps seven lender approves

Step up to the - 7the request for approval of short sale within 10 business days.
Step 8 -  sale closes answer

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