HAFA and Other Usefull Stuff
Stuff you need to know:
SOUTHEAST TITLE of Tennessee, Inc.
HOME AFFORDABLE FORECLOSURE ALTERNATIVES
(HAFA)
FREQUENTLY ASKED QUESTIONS:
- What is HAFA? HAFA is a government sponsored short sale program.
- When does HAFA take affect: Already has - on April 5, 2010.
- Who qualifies? Almost all owner occupants with 1st mortgage loans less than $729,750.00 originated prior to 01/01/09 that have missed two consecutive mortgage payments and that did not qualify or participate in the government sponsored loan modification program.
- What lenders are participating? All servicers that participated in HAMP are required to participate in HAFA, which amounts to roughly 90% of all outstanding 1st mortgage loans in the US.
- Is HAFA optional? Homeowners are not required to accept HAFA but servicers are required to offer HAFA alternatives before foreclosure.
- Who qualifies? Almost every delinquent homeowner whose 1st mortgage loan was originated prior to Jan. 1,2009 and who owes less than $729,750.00.
- What’s in it for the homeowner? At closing, homeowners get a federal $3,000.00 cash relocation allowance + release of deficiency liability on both 1st mortgage and any 2nd mortgages.
- Can investors buy HAFA short sales? Yes. Provided they agree not to resell the property within 90 days of closing.
- Who determines the list price? The lender will get an appraisal or BPO and provide the minimum net proceeds it will accept prior to listing.
- Can a homeowner request a HAFA short sale before they are enrolled in the HAFA program? Yes.
- What are the commissions? Up to a total of 6% provided the lender gets their net proceeds after costs of sale.
- Why do I need to know all about HAFA? This federal program will be huge. In 2009 short sales accounted for less that 10% of all real estate sales. Estimates are for at least a 5-fold increase in short sales by the end of 2011. Whether you are a listing agent or a buyers’ agent, you will have to know HAFA to be competitive!