HAFA-THE BASICS
*Agent* refers to anyone authorized by the homeowner to represent them during the short sale process.
I am a CHS Certified HAFA Specialist
HAFA is the federal government's Home Affordable Foreclosure Alternatives - a program designed for homeowners who:
- are unable to afford their first mortgage
- Want to avoid foreclosures, and
- have exhausted all modification attempts and continuing to own their property is not an option.
The Federal Government specifies many aspects of the program:
- Customer qualification requirements,
- the process used by the servicer, and designed time-frames
HAFA offers financial incentives to servicers and borrowers who successfully complete a HAFA short Sale or Deed-in-lieu of Foreclosure.
Benefits to homeowner:
- A lender recommends the list price PRIOR TO listing the home, and
- Waved deficiency – meaning that the mortgage debt will be settled through the program and no legal action can be taken on/against the outstanding mortgage debt.
You must meet all of the following criteria:
- Homeowner has exhausted all modification options and/or has decided to pursue a short sale or deed-in-lieu of Foreclosure.
- The property is the customer’s principal residence (exception job moves.100 miles
- The first lien mortgage originated on or before 01/01/09
- The mortgage is at least 60-days delinquent or default is reasonably likely
- The unpaid principal balance is less than $729,750 for 1 unit properties.
- The monthly mortgage payment (PITI) exceeds 31% of the borrower’s gross monthly income.
In addition to eligibility requirements the following investor considerations are taken into account to determine if a homeowner can pursue a HAFA Short Sale.
- First mortgage loan must be owned by a participating HAFA investor
- Any other subordinate mortgage/lien holders will have to agree to release the liens Contact me to find out more about the HAFA process Homes4Sale@mail.com
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