In an attempt to reduce the increasing number of foreclosures, the U.S. Treasury Department introduced a new federal program last year help to streamlines the short sale process. The program is designed to help home owners who can no longer afford to keep their homes.
The Home Affordable Foreclosure Alternatives (HAFA) program began on April 5, 2010. It is currently set to end on December 31, 2012. HAFA is designed for homeowners who have applied to the Home Affordable Modification Program (HAMP) for assistance, but have not had a success result with their loan modification program. Federal rules require servicers participating in HAMP to implement HAFA. For homeowners to participate in HAFA, they must still meet HAMP's eligibility criteria of all of the following:
- Home is the owner's principal residence
- First-lien mortgage is in delinquency or default is reasonably foreseeable
- Mortgage loan closed before January 1, 2009
- Unpaid balance is under $729,750
- Mortgage payment is over 31% of gross monthly income of home owner
HAFA is designed to simplify and streamlines the process for a short sale or deed-in-lieu. It does this by providing a standard process flow for the review. It also sets minimum performance time frames for lenders and it uses standard forms and documentation for all participants.
Call me today to find out more about becoming a Certified HAFA Specialist or partnering as a HAFA short sale team.