In an attempt to help people who owe more on their homes than they can sell for the U.S. government is making an effort to help homeowners who find themselves in a financial situation where they can no longer afford to pay their mortgages. The Government has initiated a program called HAFA, or Home Affordable Foreclosure Alternative.
Basically it’s a program that will allow people who are behind in their payments and meet certain qualifications to sell their home through a pre-approved short sale. There are several benefits to this program over traditional short sale, if you and your loan qualify it would be well worth the time to find out more.
Here are some of the advantages of a HAFA short sale.
- The seller will receive $3000 for relocation assistance.
- The foreclosure sale must be suspended during the eligibility. That is while the property is being marketed, pending or heading for closing. (The marketing time-line is 120 days with extensions possible for up to one year.)
- Sellers will be released of all liability on first and other subordinate liens. (The other lien holders must agree to the terms of the amounts they will receive.)
- Seller cannot be required to sign a note or pay any additional amounts to satisfy liens.
- The short sale is pre-approved. This makes marketing the property is here and considerably shorten the time to close the sale once a purchase and sale agreement has been mutually accepted.
- Purchase agreements are approved or denied within 10 business days. If the purchase and sale agreement needs to preapproved conditions it must be approved.
- If a short sale is not successful, a deed in lieu of foreclosure may be possible with the seller still receiving $3000 relocation assistance.
- There is also a monetary incentive for the servicer they get $1500.
Not all loans are eligible for this program, and in the sale has to be within certain investor guidelines in some cases.
If you know of anyone who is behind on their mortgage payments and might need help or think might be interested in this program, please have them give me a call at 360-739-6981.