The HAFA guidelines have been revised. Please note important revisions to the HAFA program which take effect April 5th.
Below is an outline of all pertinent changes to the HAFA program:
- Program started April 5th
- The borrower relocation fee has been increased from $1,500 to $3,000 and is still paid by servicer/investor from gross sale proceeds
- The servicer incentive has been increased from $1,000 to $1,500 and is still paid by Treasury
- The maximum investor reimbursement/incentive increased from $1,000 to $2,000 to investors who allow up to $6,000 in short sale proceeds to be distributed to subordinate lien holders
- If subordinate lien holders accept the above referenced payment from the 1st lien holder, the new guidelines require subordinate lien holders to release the borrower from future liability as is already required of the 1st mortgage lien holder in the original HAFA guidelines. The servicer must receive a written commitment of release of borrower liability from the subordinate lien holder prior to providing notice to the settlement agent to release funds to the subordinate lien holder.
So, with the updated guidelines, borrowers, servicers and investors get more money for a completed HAFA short sale and once the transaction is closed, borrower is released from all liability by all lien holders. As of this email, Fnma and Freddie still have not announced if they intend to adopt the HAFA Short Sale guidelines.
For more information of the HAFA program, visit http://www.realtor.org/government_affairs/short_sales_hafa or http://hafa-program.com/
Coldwell Banker Residential Real Estate
702 W. Drake Rd. Bldg A
Fort Collins, CO 80526