Major Changes to HAFA Program! Yes it's better

Reblogger Jeana Cowie
Real Estate Agent with RE/MAX Real Estate Limited

This is a very important blog via Laura Lake, Keller Williams Realty, La Quinta, CA regarding changes that will take place June 1, 2012 to HAFA Program.

Original content by Laura Lake BRE01455311

On Friday, March 9, the Obama Administration announced updates to the Home Affordable Foreclosure Alternative (HAFA) program. Created in 2009, HAFA is a government-sponsored initiative assisting all Home Affordable Modification Program (HAMP) eligible homeowners in avoiding foreclosure through short sales and deed-in-lieus.
 
The HAFA updates will go into effect on June 1, 2012, and will allow more distressed homeowners to seek assistance. Most importantly, the deadline for submitting for HAFA eligibility will be extended a full year, from December 31, 2012, to December 31, 2013.
 
Other major changes from March’s updates to the HAFA program include:
 •The removal of occupancy requirements. Previously, HAFA required homeowners to have lived in the property within the last 12 months.
 •$3,000 relocation incentives will be limited to properties occupied by an owner or tenant at the time of the short sale.
 •Mortgage payments will be allowed to exceed 31% of the homeowner’s gross monthly income. This update will allow a homeowner to stay current on her mortgage and still qualify, minimizing the overall impact to her credit.
 •Secondary lienholders may receive up to a maximum of $8,500, up from $6,000 previously.
 •And one of the most dramatic changes: The Credit Bureau Reporting will be Account Status Code 13 (paid or closed account/zero balance) or 65 (account paid in full/a foreclosure was started), as applicable.
 
With these updates, a homeowner can be current on their mortgage, qualify for HAFA, continue to make their payments, and execute a short sale with minimum impact on their credit!

Lean if you should stay or sell your home at:   www.StayorSellMyHome.com

Laura Lake, Keller Williams Realty, La Quinta, CA  760-464-8138

Laura Lake, Realtor with Keller  Williams Realty, Short Sale Specialist, CDPE Certified, HAFA Certified

760-464-8138

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Rainmaker
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Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

I wonder why we need a program, who is making money off managing the program. Is the tax payer footing the bill somewhere unknowingly.

I have always said banks should extend the loan to 40 years or 1/3 of income and move on. Does any remember or think of how much a bank makes off a 30 year note and they need a program, not to mention they have sold most of the loans to Fannie and Freddie and now buying them back to only sell again.

Mar 27, 2012 12:04 AM #1
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Jeana Cowie

Broker Associate, ABR, CRS, GRI, SRES
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