We were on a webinar yesterday given by an attorney who specializes in short sales.
It has been brought to their attention that in the fine print of the HAFA program (Federal short sale program) that two key factors need to be explained to the sellers. The first being that if they chose to do the HAFA program the seller agrees to make partial payments and it is calculated base on income. The payments are required until the house is sold and the title transferred.
Next, if the seller is not approved for the short sale the sellers agree to do a deed-in-lieu of foreclosure basically handing over the keys instead of going through a full foreclosure. Please make sure all Sellers read the full agreement and consult an attorney for advice before they apply for any short sale program.