Santa Cruz Short Sales - What is a HAFA Short Sale?
HAFA stands for Home Affordable Foreclosure Alternatives. This program seeks to help homeowners in trouble do a short sale or a deed in lieu. One of the main differences with a HAFA short sale is that you apply for the short sale before you list your home so you will know before listing if you are approved. This means that your Santa Cruz short sale agent can market your home as an ‘approved short sale’ with hopefully less wait time for a buyer, which is attractive for them.
If your HAFA short sale is approved, the benefits are that:
You the home owner are not responsible for the short sale deficiency for your first mortgage. If there is a second, HAFA does not guarantee that the deficiency will be waived
HAFA can provide you with up to $3000 in relocation costs.
A HAFA short sale can affect your credit less than a regular short sale or a foreclosure
If you apply for a HAFA short sale no foreclosure action will be taken during the short sale process.
You can apply for a HAFA short sale in California before you list your home so you will know if you are approved for the short sale ahead of time.
The Cons of a HAFA short sale are:
HAFA short sales have a lot of red tape and eligibility requirements. HAFA short sales are taking longer than promised to receive an approval.
HAFA short sales are only for primary residences, not investors
You must keep the property in good condition and be current on any HOA dues
For a California single family home the unpaid balance must be less that $729,750
If you have a second loan on your home, HAFA will only approve up to $6000 pay off to the second lien holder. If your second lender does not agree to that amount you cannot do a HAFA short sale.
For more about Santa Cruz HAFA short sales, contact your Santa Cruz short sale agent here
Comments(5)