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SHORT SALES WITH HAFA: DEFICIENCY JUDGMENT.. NOT SO SCARY ANYMORE

By
Managing Real Estate Broker with Maxus Realty Group of Samson Properties Broker - Realtor - CEO

 

SHORT SALES WITH HAFA:  DEFICIENCY JUDGMENT.. NOT SO SCARY ANYMORE

HOME AFFORDABLE FORECLOSURE ALTERNATIVES (HAFA) PROGRAM HAS BEEN IMPLEMENTED TO ASSIST HOMEOWNERS IN DISTRESS.

short sales maryland 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 received is less than the amount owed.

This applies specifically for my State of Maryland. 

Some other States are exempt from deficiency judgments . . 

To find out if you qualify under the HAFA program
With HAFA, the homeowner is also entitled to a $3,000 relocation costs 

Find out if your bank is participating in the HAFA PROGRAM here.

HAFA is for you when you simply can not afford your house anymore and a foreclosure is eminent
.

"Maryland and Virginia Homeowners could benefit with the new HAFA Program"

 



In case you are wondering. .
What is the difference between a foreclosure and a short sale using the HAFA Program?

In a short sale with HAFA you SELL YOUR HOUSE and you owe the lender nothing!

In a Foreclosure.YOU LOSE IT ! and you get a deficiency judgment filed against you*

 

short sales maryland

 

Click on my eBook about Short Sales to have a clearer vision if you could use a SHORT SALE in order to begin a new fresh start.. .you must have a hardship to qualify.

Fernando Herboso is a Certified Distressed Property Expert

 

Short Sales Maryland
and also a Gold Member Certified Default Resolution SpecialistTM with (CDRS)

 

 

short sales specialist

You can call (Fernando Herboso) directly @ 240-898-1848 ext #1 or email : Fernando@Herboso.com

 


We can help you directly in Maryland, DC or Virginia

 

If outside our area. ..we can guide you to a local true professional that cares and loves helping people avoid

foreclosure as much as we do!

Just give us a call or email to Fernando@Herboso.com


 

Short Sales Maryland , DC and Virginia

 

 

 


 

June Piper-Brandon
Coldwell Banker Realty - Columbia, MD
Creating Generational Wealth Through Homeownership

Fernando, this is a great information.  Thanks for sharing.  Short sales are often confusing for sellers and some agents.

Apr 10, 2010 12:36 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Fernando, I truly hope HAFA turns out to be as good as it sounds. Getting rid of the possibility of a deficiency judgement is huge.

By the way, your blog looks great.

Apr 10, 2010 12:52 AM
Mike Saunders
Retired - Athens, GA

Fernando - nicely stated, here's hoping that this will have a more positive effect than the previous attempts

Apr 10, 2010 03:33 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Fernando, I find this post very informative and reassuring.

Apr 11, 2010 05:26 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Fernando, what about the 2nd mortgage lienholder?  Do they have to agree not to purchase a deficiency judgment also?  Because in California, they are usually the main source of a deficiency judgement.

Apr 11, 2010 01:48 PM
Kathryn Acciari
Central One Federal Credit Union - Shrewsbury, MA
Mortgage Loan Originator

Fernando, your HAFA series is encouraging.  I hope many short sellers will ask you for your assistance.

Apr 14, 2010 05:35 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Fernando, I just closed a short sale today and wish this had been available back months ago but I honestly don't know if it would have qualified. Thanks for the valuable information.

Apr 15, 2010 12:25 PM
Mike Linkenauger
Jacksonville, FL
Short Sale Specialist Network

Fernando, I don't find this reassuring, as only a few lenders are approving deals in the required timeline so far, and the program does NOT offer ample compensation to junior lien holders nor does it address MI company approval.  It will only effect a small portion of deals unfortunately

Apr 20, 2010 04:09 PM