For some folks, it may be time to celebrate as HAFA is finally accomplishing something in the short sale world. Finally is definitely the operative word here. HAFA was written into the March 2009 stimulus package, but didn’t come to fruition until April of 2010. At the end of 2010, HAFA was still not making the cut—closing something less than 700 transactions in the first several months. Then, the guidelines were revised a bit and HAFA had its first birthday.
The most recent HAFA news (according to the Treasury’s latest report which covers program activity through June of this year) is that a total of 10,438 short sales and 316 deed-in-lieu (DILs) have concluded through HAFA. Servicers started 3,631 new HAFA transactions during the month of June, which means an agreement has been offered to the homeowner for terms of a potential short sale or DIL.
While these numbers to not even approach the number of families in the pre-foreclosure stage, the Treasury’s latest report shows the program is beginning to show some measured success—up 55 percent compared to the 1,428 HAFA transactions that were completed in May.
One thing that originally made folks hot for HAFA was the anti-deficiency protection. However, now that California has Senate Bill 458, which allows for complete anti-deficiency protection, it’s possible that some Californians may not see the grand benefit of HAFA program. If a seller has more than one lien holder (or if s/he wants the $3000 HAFA incentive), then Californians may still see some benefits to the HAFA program. However, will buyers, sellers and their agents have the patience to wait while the bank processes the paperwork?
That’s the $64,000 question.
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