Welcome to 2011,
Changing Short Sale Rules - The HAFA program has been a mixed bag, but last week the Treasury Dept. changed the rules to make short sales easier.
Here are the primary changes to HAFA: -
- HAFA no longer requires that servicers verify the borrowers finances
- HAFA no longer requires servicers to determine if the borrowers monthly payment is higher than a 31 percent debt-to-income ratio.
- HAFA no longer requires second-lien holders to agree to accept 6 percent of the unpaid principal balance owed them, up to $6,000. Servicers now decide who gets paid how much, with a cap still at $6000.
- HAFA now requires borrowers seeking a short sale get an answer/agreement within 30 days.
Overall, these changes should help expedite short sales, which is good news for home owners, realtors, investors and ultimately the banks.
No longer required is a verification of borrowers' finances and DTI ratio. a "hardship affidavit," is still required but finical records are not required as part of the Hardship Affidavit
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