HAFA, or Home Affordable Foreclosure Alternatives, was announced by President’s Obama’s administration on November 30th, 2009 as a part of the Making Home Affordable Plan. This new legislation offered incenttives for lenders for home owners who were dealing with finanical hardships. The new guidelines for lenders where set by the United States Treasury and offered additional support for home owners who were going through the short sale process. The goal was to streamline short sales as well as stable the housing marketing state and nation wide. On April 5, 2010 the Home Affordable Foreclosure Alternatives program, or HAFA, took effect and offered servicers, lenders and the borrowers themselves financial incentatives to complete the short sale process. (This was also the case for Deed-in-Lieu of foreclosure options as well). This new program is very helpful for borrowers and their Realtors because it limits the time lenders can respond to short sales and also forces them to waive their option of seeking legal action against defencies. In order to be eligible for the HAFA program:
The home must be your personal residence The mortgage amount must be less than #729,750. The home owner must be suffering from a financial hardship The mortgage origination date should be before january 1, 2009 The mortgage payment, including HOA, must be more than 31% of the borrower’s gross monthly income. The loan must be a 1st mortgage You must meet ALL of the criteria above So what happens if you qualify? If you qualify financial incentives do follow including $1500 to the loan servicers and borrorwers get their debt fully forgive and they receive $3,00 in relocation expenses. For more information onthe California Home Affordable Alternatives program, or HAFA Government short sale program please contact us today. Our California short sale specialist Realtors can help you get out of owing more than your house is worth.