WHAT IS HAFA?

HAFA is an acronym for Home Affordable Foreclosure Alternatives, a government-sponsored program that helps individuals and families who are experiencing difficulty in selling their homes. HAFA helps people quickly sell their homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. Investors and servicers can also receive financial assistance through the program for administrative costs, processing fees, etc. The program sounds simple, but is actually quite complex with many guidelines and rules.

WHAT HAFA DOES.

Well, the program is very complex. It uses the borrower’s financial and hardship information when considering loan modification. It allows borrowers to receive pre-approved short sale terms before listing the property, which includes the minimum acceptable net proceeds.Servicers (banks, lenders, etc) are prohibited from requiring a reduction in the real estate commission agreed on, which is up to 6 percent. Borrowers are fully released from future liability for the first mortgage debt within 10 business days from the date the servicer receives the sale proceeds, which means that no promissory note, deficiency judgement or cash contribution is allowed.Servicers will set monthly mortgage payment during the marketing period. This payment is not to exceed 31% of the borrowers gross monthly income. Like any other loan modifications, all standard processes, documents and timeframes apply.The program also includes several financial incentives including $1,500 to go towards the borrower's relocation cost. Servicers can receive $1,000 to help with their administrative and processing costs. Finally, investors get up to $1,000 for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).In simpler terms, the HAFA program works through the lender. They receive a financial incentive to participate, and the borrower receiveds a financial incentive to take advantage of the option. Although it sounds simple, the program is quite sophisticated and requires patience from both the servicer and the borrower.

WHAT HAFA DOESN'T DO.

Hafa does not apply to everyone homeowner and every property. To qualify, you must own a home that was purchased before the year 2009. In addition, you must be living in the home as your primary residence, and must have been previously considered for other foreclosure prevention options including loan modification. Borrowers must also meet HAMP eligibility, but can be either delinquent or current on their mortgage payments. Even if current, the borrower must be able to demonstrate financial hardship.

Here are a few guideline questions to ask yourself to determine your eligibility:

1) Is your home your primary residence? In other words, if you have multiple residences - do you spend most of your time in this residence?

2) Is the amount you owe on your first mortgage equal to or less than $729,750? (Do not include the total of your second mortgage.)

3) Are you having ongoing financial trouble that makes it difficult for you to make your mortgage payments each month?

4) Did you get your current mortgage before January 1, 2009?

5) Is your monthly payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, etc) more than 31% of your current gross income?

DO I STILL NEED SHORT SALES FOR AMERICA WITH HAFA?

Absolutely! The HAFA process is complicated and confusing. If you don't follow the guidelines properly it could actually take you LONGER to get a short sale approved then if you went through conventional means. Here at Short Sales For America we have studied the HAFA regulations in depth. We know the ins and outs of the program and if you will even QUALIFY for it, BEFORE you waste your time going through the application process. If you do qualify we will still be able to get your necessary documentation together and into the banks hands for review faster than any other company. Our MASSIVE database of inside contact numbers for all of the major lenders gives us access that the ordinary person applying off the street just doesn't have.

We will get your deals submitted correctly the first time, received faster and approved faster than any other company in the industry. And best of all, we do this for absolutley NO fee to the seller, buyer or realtor using our in house closing agent. Short Sales For America, even under HAFA, still stands for the highest quality service with the least amount of work on your end for NO COST! To get started submitting your property for review just CLICK HERE.

Sincerely,

Short Sales For America

President Obama has released his HAFA (Home Affordable Foreclose Alternatives) Mortgage Relief Plan. The impact of this plan on the mortgage, housing and finance markets can not be underestimated. Here at Short Sales For America we have all of the inside information on just how this plan will impact our industry.

We are living in turbulent times and it is important that you place your files with a company which is on the cutting edge. Short Sales For America will be able to use the tools in President Obama's plan to help many of our clients close more short sale contracts. Another reason why Short Sales For America is the company YOU want handling your short sale negotiations!