Thinking of short selling your home but not sure which way to go, or who you should talk to? Do you find yourself in a distress situation and need help?
Well, you should really consider doing a HAFA short sale. HAFA is the Home Affordable Foreclosure Alternatives Program, and is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales or deeds-in-lieu of foreclosure.
With the HAFA program lenders are to assist eligible homeowners in quickly and effectively implementing short sales or deeds-in-lieu by providing financial incentives to lenders that carry out foreclosure alternatives through the program's guidelines set forth. The program was introduced to help communities from being destroyed through massive foreclosures. HAFA currently is only applicable to conventional-type, non-governmental Services Enterprises (non-GSE) mortgages, and does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.
Important things to know about HAFA:
-Provides financial incentives to borrowers, services and investors.
-Requires that borrowers be fully released from future liability for the debt.
-Allows the borrower to receive pre-approved short sale terms prior to the property listing.
-Homeowners qualify for $3,000 in Borrower Relocation Assistance after a short sale of deed in lieu has been completed.
-Financial incentives for services participating in the program include up to $1,500 servicing bonus upon completion or a short sale or deed-in lieu.
-Financial incentives for investors include up to $2,000 for those who allow a total up to $6,000 in short sale proceeds to be distributed to subordinate lien holders.
-Lenders pay all servicing fees-homeowners have no out-ofpocket expenses.
Why should I consider a HAFA short sale as opposed to a regular shortsale? HAFA sets certain guidelines and incentives for banks and lending companies so you will know if a short sale can even be completed. The sale process can take a very long time, HAFA makes sure that short sales happen more quickly by streamlining the short sale process. The traditional short sales take too long, and eventually buyers lose interest in the home. The HAFA program is designed to speed up the process and and even gives banks incentives foe each short sale they do. After a HAFA short sale, you may qualify to receive $3,000 in BRA to help you. However in a regular short sale,there is no government incentive for banks to help you.
- HAFA process is shorter then a short sale.
- HAFA speeds up the process by putting in place timelines that banks and your Realtor must follow.
- Each steps has defined days and deadlines in which things must happen, which keeps everyone on track and avoids any delays
What is a CDPE?
A CDPE, or Certified Distressed Property Expert, is a real estate professional who has undergone specialized training in foreclosure avoidance options, specifically short sales. The education a CDPE receives is based 100% on helping homeowners avoid foreclosure and assisting them through this difficult and oftentimes confusing process. If you are facing a financial hardship and may not be able to make payments on your home, and would like to know more about alternatives to foreclosure such as HAFA, contact me today!
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