Question: Do I qualify for the HAFA Short Sale Program?
Answer: Call me and I can let you know! Hah! In all seriousness, this is a bit of a loaded question because a borrower has to meet several criteria in order to qualify for the program. MOST of the top lenders and mortgage holders do participate in the program and it can be a great option for someone who is trying to avoid a foreclosure, especially with the new qualification parameters. Prior to these new parameters, the biggest reason our clients were not getting approved for HAFA was because they did not meet the required debt-to-income ratio. As of 2/1/11, they have done away with this which has resulted in several of my clients now getting in the program. The property being a primary residence, or at one time a primary residence, is still in place, so investment properties typically won't qualify. The two biggest benefits for the borrower/homeowner by being in the HAFA program is that they get up to 4 months to sell their house withouth any risk for foreclosure AND they can receive up to $3,000 cash at closing. However, the program is NOT FOR EVERYONE. The biggest challenge we have had with clients in the HAFA program is the required list prices from the lender. Many of them have been way too high and we have found the appraisal dispute process to be cumbersome and not extremely effective.
I would be happy to provide anyone with more details about this program, feel free to email me at verdeaux@kw.com with your questions.
