Shorts Sales and the new HAFA program in Pleasanton and San Francisco Bay Area California- Things you need to know about HAFA Home Affordable Foreclosures Alternatives Program
In regards to Short Sales and the new HAFA program, a lot of things have to be discussed. Finally attention is being given to short sales at both the State and
Federal level.
I am not a CPA and am not attempting to give tax advise, but you need to contact your tax advisor immediately if you were involved in a Short Sale in 2009!
Califorina Legislature has passed and the Governor is supposed to sign a new law that will help home owners who lost their home in 2009 due to a short sale,
foreclosure, and/or deed-in-lieu. You will not have to pay taxes on the debt forgiven IF specific criteria is being met. Remember, the forgiven debt is treated as
Phantom Income and this law will help you if you were involved in a short sale in 2009 to not pay taxes on that phantom income, BUT you need to meet certain
criteria.
There is a lot of talk about HAFA, the Home Affordable Foreclosure Alternatives Program (HAFA). It is a viable option to avoid foreclosure! finally the Federal
government and the Banks are starting to realize that it is better for a HomeOwner as well as for the bank to do a short sale instead of letting the house go into
foreclosure! They are so smart, I know. HAFA will take effect on April 5th 2010. It allows Borrowers/Sellers to receive a pre approval on the short sale by the
bank! More important, the Borrower. is to be fully, a repeat fully released from future liability at least from the first lien holder (the main bank holding your debt).
NO cash contributions, NO promissory notes, NOR deficiency judgment! that is fantastic specially if you have a mortage with Bank of America, trust me.
Of all the Short Sales I have done, and we are talking over 80 Shorts Sales in the last 36 months (I am not bragging...ok...maybe a little)Bank of America has
shown to be the toughest and meanest to deal with, I could share so many stories in which Bank of America showed so little compassion and truthfully behaved
like a big bully.
HAFA also brings some financial incentives for people letting the house go into a short sale, up to $3000 in relocation costs! and $1500 for service providers to
cover processing costs!
HAFA must consider Borrowers attempting to do a short sale within 30 days. There is a lot of goodies coming with HAFA, it is not perfect but it is a step
forward.
Please call us and find out if we can help you somehow during these tough times. It is not the end of the road people, is just a bump, we need to continue moving forward!
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