The governments HAFA program has had some last minute changes that makes the program twice as appealing to potential short sellers. The foreclosure alternative program now pays out $3000 to homeowners who sell their house for less than they owe - a short sale and now $6000 to second lien holders. Previously the government paid out only $1500.
Lenders are compelled under the new rules to answer a valid offer within ten days. Before theses rules lenders did not have any time constraints and short sales were anything but short.
Lenders who offer HAMP modifications must offer the HAFA program before they can foreclose. The HAFA rules apply only to loans made prior to 2009. The borrower must be "at-risk", which means that they have a verifiable hardship. The program only applies to conforming loans under $729,250 and their first mortgage payment must be less than 31% of income.
http://makinghomeaffordable.gov/hafa.html
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Thanks for sharing about the new rules. I think this is something that everyone needs to be aware of.
ReplyDelete@Lake, not sure how many of us affect, just because of the high amount, but you're right we all need to be aware of this.
ReplyDeleteGreat info on the HAFA program.homes for sale harrisburg
ReplyDeleteI agree... it is so important that as a Realtor I know the law, because there is no way our clients will. Thanks for sharing!
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