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SHORT SALES WITH HAFA: DEFICIENCY JUDGMENT.. NOT SO SCARY ANYMORE
SHORT SALES WITH HAFA: DEFICIENCY JUDGMENT.. NOT SO SCARY ANYMORE HOME AFFORDABLE FORECLOSURE ALTERNATIVES (HAFA) PROGRAM HAS BEEN IMPLEMENTED TO ASSIST HOMEOWNERS IN DISTRESS. Home Affordable Foreclosure Alternative
The HAFA Program became effective April 5th 2010, servicers may participate immediately, or as soon as is practical. The primary options available through HAFA include Short Sale and Deed-in-Lieu of Foreclosure.
With HAFA. . . Lenders will not pursue a deficiency judgment for the shorted amount.
Your home is worth $300,000 and sell it as a SHORT SALE with HAFA . .
PROBLEM: . . .but your Mortgage is $500,000
There is a $200,000 difference between the two. . .that is the shorted amount that could become a DEFICIENCY JUDGMENT AGAINST THE HOMEOWNER
Lenders before HAFA have reluctantly agreed in a case by case basis to remove this shorted amount after a short sale.
With HAFA, now Lenders have agreed 100% NOT TO PURSUE A DEFICIENCY JUDGMENT AGAINST THE HOMEOWNER
In another words, you are not losing your home, you simply selling it and BREAKING EVEN!
The real definition is:
A deficiency is the difference between the fair market value of the property and the amount received, providing the amount ... more
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