2nd liens can now get up to $8,500. (It was $6,000).This provides consistency for all parties involved
The deadline for HAFA has been extended. A borrower now has until December 31, 2013 to submit a Short Sale Agreement or a written request for a consideration for a Short Sale Agreement to be eligible for HAFA
There are no longer any occupancy requirements for HAFA eligibility. (Before the update the property had to be occupied as the borrower’s primary residence at some point within the prior 12 months).
Section 6.2.4.2, Chapter IV of the
Handbook is amended to increase from $6,000 to
$8,500 the amount a servicer may authorize the settlement agent to pay from gross
proceeds to subordinate mortgage holder(s) in exchange for a lien release and full release
of borrower liability. Investors will continue to be reimbursed one dollar for every three
dollars of short sale proceeds paid to a subordinate mortgage holder up to $2,000.
Borrower relocation incentives will be limited to HAFA short sale or DIL transactions
where the property is occupied by a borrower or a tenant at the time the SSA, Alternative
RASS or DIL Agreement is executed and who will be required to vacate the property as a
result of the short sale or DIL. Servicers must determine if a property subject to a HAFA
transaction is occupied by a borrower or tenant who will be required to vacate and may
only authorize relocation incentives for such occupants. Servicers must ensure that the
HUD-1 reflects a payment to the borrower or tenant, when appropriate.
For more info go to
https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/sd1202.pdf
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