Is Your Glass HAFA Full or HAFA Empty?
HAFA is a program the federal government rolled out on April 5, 2010. It is a license to short sale your property if you have a valid hardship. What's a hardship?
•1. Rate change or increase in monthly payments now or in the future
•2. US Military
•3. Loss of Income
•4. Death in the family
•5. Relocation
•6. Separation/Divorce
What does HAFA do for a homeowner?
•1. It allows them to be pre-approved by their lender for a short sale and releases them from future liability of mortgage debt.
•2. Provides the borrower, servicers and investors a financial incentive to close the short sale transaction.
•3. Puts the servicer and investor on a standardized timeline for completing tasks.
How do I Qualify for HAFA?
•1. Property has to be your primary residence.
•2. Loan is a 1st lien that is not VA/FHA or Fannie Mae/Freddie Mac backed loan.
•3. Mortgage is delinquent or default is reasonably foreseeable based on hardship.
•4. Current unpaid balance is equal to or less than $729,750.
•5. Borrower's total monthly mortgage payment exceeds 31% of borrower's gross income.
•6. Property must be listed with a licensed Real Estate Agent or Realtor.
This is a difficult time in our Nation's history. Don't be embarrassed to contact your local Real Estate Professional; we are hearing from a lot of people with similar challenges. With our unemployment rate as high as it is, many people simply cannot afford their mortgage payment. It is our job as Realtors to assist these people in transitioning out of their over-burdensome mortgage into more affordable living arrangements.
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