We’re working on an entire section of our website for the HAFA program. HAFA stands for “Home Affordable Foreclosure Alternatives” and it’s supposed to change the way short sales are done. The program takes affect April 5th, 2010. Many lenders are signing up for the program. Here are a couple major changes.
Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
And the next big change is the $1,500 payment to homeowners who complete a successful short sale for “relocation expenses”.
These changes are huge for homeowners with lenders who are now participating in this HAFA program. Many of the large lenders have signed on. What this means is, faster approval times, which we’re already starting to see, and your lender can’t come after you for the deficiency. The short sale settlement will be it. So, if you’ve recently been denied for a loan modification here in Georgia or you’ve got a foreclosure date coming up, give us a call.
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Hope this helps for your section…
http://www.zillow.com/blog/mortgage/2010/03/17/hafa-2-guys-2-burgers-and-a-voice-recorder/
Dean Ouellette´s last blog ..Why didn’t my house sell in five months? Did you check the marketing?
I read the article and actually commented on that post. We have to remember, a short sale and a loan mod are two separate animals even though they have the same qualifications process. A short sale is the lender cutting their losses and a loan mod means the borrower has to re-qualify for the loan they went behind on. As you can imagine, short sale success rate is much higher than loan mods. Therefore, we believe the HAFA program will be much more successful than HAMP.
Hi,
Thank you for an interesting article.
Regards,
Mike Bridges
Property Express CRM