MAJOR NEWS FOR HOMEOWNERS LOOKING TO SHORT SELL!
This program will not require that you are delinquent on your mortgage payment- you can still be current on your mortgage and short sale your home, less impact on your credit- read below.
March 9, the Obama Administration announced updates to the Home Affordable Foreclosure Alternative (HAFA) program. This program was created in 2009 as a government-sponsored initiative assisting all Home Affordable Modification Program (HAMP) eligible homeowners in avoiding foreclosure through short sales and died-in-lieus.
The new HAFA rules will allow more distressed homeowners to seek assistance. The deadline for submitting for HAFA eligibility has been extended a full year, from December 31, 2012, to December 31, 2013.
The following are other major changes to the HAFA program include:
§Previously, HAFA required homeowners to have lived in the property within the last 12 months, now the occupancy requirements have been removed.
§$3,000 relocation incentives: now limited to properties occupied by an owner or tenant at the time of the short sale.
§Mortgage payments may now be allowed to exceed 31% of the homeowner’s gross monthly income. This update will allow a homeowner to stay current on her mortgage and still qualify, minimizing the overall impact to her credit.
§Secondary lienholders may now receive up to a maximum of $8,500, up from $6,000 previously.
§And one of the most dramatic changes: The Credit Bureau Reporting will now be Account Status Code 13 (paid or closed account/zero balance) or 65 (account paid in full/a foreclosure was started), as applicable.
A homeowner that qualifies for HAFA can be current on their mortgage, continue to make their payments, and execute a short sale with minimum impact on their credit!
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