HAFA Program Pays Homeowners $3,000 for Successful Short Sale
How does $3,000.00 towards your relocation sound?
The United States Treasury Department proposed the HAFA short sale program on November 30, 2009, with new incentives for homeowners, lenders, and servicers who work through the short sale process. The Obama Administration created this program to encourage lenders to prevent foreclosures and entice Short Sales. This new program, HAFA, impacted on April 5, 2010. Not only are financial incentives given, but the HAFA program limits the comeback time a bank is allowed and also compels that the lender waives their right to engage in a deficiency judgment. If you would like to know if the Home Affordable Foreclosure Alternative is as rewarding as it sounds...
Certain requirements must be met to qualify for HAFA Short Sales:
To see if you qualify for a HAFA Approved Short Sale, CONTACT US!
We will thoroughly evaluate your situation and give you the best options available to you.
Additional HAFA Incentives
HAFA offers incentives to all three participants during a short sale; borrowers, lenders, and servicers. Since these benefits depend on the short sale's prosperous completion, HAFA encourages all parties to collaborate in order to get the transaction done.
- Borrowers receive $3,000 in cash at closing to go towards relocation expenses. Furthermore, the borrower is entirely forgiven of the debt, including the deficiency that lingers after the sale.
- Loan Servicers receive $1,500 after the successful conclusion of a short sale.
- Investors receive a maximum of $2,000 for signing off on overheads to second position lien holders. Also, investors receive $1 for every $3 spent to release junior liens; up to 6% with a maximum of $6,000.
The Home Affordable Foreclosure Alternative Program
Another great benefit to the program is that borrowers receive the pre-approved short sale conditions before the property is even listed. This allows the borrower to be more conscious of how the complete process will go. In addition, the terms will contain the minimum amount of net proceeds and closing costs the bank will be willing to acknowledge.