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HAFA Changes Expected To Increase Short Sale Approvals
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As of February 1, 2011, the HAFA program (Home Affordable Foreclosure Alternatives) has revamped homeowner eligibility requirements which is expected to have the result of greatly increased numbers of short sale approvals. AMS Servicing, LLC stated in an interview with HousingWire, that they expect short sales to increase 50% in 2011. AMS also stated that due to the fact that HAFA has loosened up its eligibility criteria, that as many as 91% of previously ineligible borrowers may now be eligible to do HAFA short sales.
As of the recent HAFA directive which went into effect on February 1, 2011, HAFA does not ask for income verification unless the borrower is less than 60 days overdue on the mortgage.
What are the benefits of doing a HAFA short sale versus a traditional short sale? First, the borrower will receive a deficiency waiver; second, the borrower will receive up to $3,000 in relocation funds; and the borrower does not have to wait until he/she has an executed contract in order to do the HAFA short sale. Borrowers can apply to do the HAFA short sale prior to even listing the property for sale or obtaining an executed contract. In some instances, borrowers have been able to obtain a pre-approved short sale list price so that they are able to more efficiently market the property to prospective buyers and get the short sale closed in much less time.
For more information about the HAFA program, visit http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/default.aspx
and Housingwire article http://www.housingwire.com/2011/02/23/short-sales-to-ramp-up-with-hafa-changes |
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Posted By Elizabeth Ermel on
March 11, 2011 09:25 am |
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