HAFA: What does this mean for me?
If you find you think you are a distressed property owner and are trying to find a way to not go to foreclosure, then this might be your answer. There are qualifications required to be accepted into this new government program which can stream line the short sale process. This process will make it easier for a buyer to go forward on making offers for these properties. Historically a short sale offer can take as much as a year to hear back from a lender for an approval on an offer. Many buyers will walk and find another property to purchase rather than wait that amount of time.
Do you qualify?
1.) Is the home you are in your primary residence?
2.) Is the first mortgage on this property issued prior to 2009?
3.) Are you behind on your mortgage payments or do you find you are in a position of defaulting?
4.) Is the principle balance due below $729,750?
5.) Is your monthly mortgage payment greater than 31% of your gross income?
If you can answer yes to all the above questions then you qualify.
Guidelines
* You fail to qualify for the HAMP ( home affordable modification program )
* You didn't successfully complete a HAMP trial period plan.
* You missed at least two payments on your HAMP modification
*You request for a short sale.
* Your lender is requested to contact you that you are qualified for a short sale, and you are then given 14 days to return a response to them.
Short Sale Agreement
You will be given 14 days to have a signed Short Sale Agreement ( SSA) returned to your lender. This is a document which will be sent to you. You will be allowed to sell your house within a 120 day frame by means of a Real Estate Agent. ( hopefully you will choose me)
Purchase
After you receive an offer you or your agent will have to submit a completed Request for Approval of Short Sale ( RASS) to your lender. Once your lender receives the request with necessary documents, your lender has only 10 business days to inform you if your request has been approved or denied.
Closing of the Short Sale
The closing may take place within 45 days. Within ten days ( business ) or sooner the lender should release the mortgage lien and waive the right to seek any deficiency judgments and may not require a promissory note for any deficiency. The lender may offer up to $2500 for you to relocate. This is a given in order to aid in your moving from your home to a new place.
This program can help you reach a decision and make a sound plan for listing your home. This is meant to provide better results than with past methods.
As a distressed property specialist, I am happy to help you better understand more about this program. There is much more to this program than mentioned above. I have the forty-five plus page document explaining the program in more detail.
Let me help you answer those many questions regarding whether this is a right move for you.
Submitted by
Susan Paige
Associate broker
Distressed property specialist
ERA Today Realty
207-892-8100
Susan.paige@era.com
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