The federal Treasury Department's short sale program, HAFA, has been updated again and these new changes mean more homeowners will be eligible for help. Part of Making Home Affordable, the federal short sale program offers many benefits for borrowers who can no longer afford to keep their home. The government is determined to help lenders, servicers and borrowers move through this process more quickly and clear out the delinquent loans asap.
HAFA provides homeowners with a protection against future liability for the mortgage debt, and eliminates the lender asking for a promissory note or cash contribution from the seller. Seller's also receive $3000 paid at closing to help with relocation expenses.
- changes effective June 1, 2012, but lenders may implement them sooner.
- HAFA now open to investor properties as well as owner occupied homes.
- Second liens are now paid up to $8500-previously capped at $6000.
- Eligibility reviews completed within 30 days of submission.
- 31% payment critieria eliminated.
- Program extended through 2013.
- Standard credit reporting codes-less credit impact-can buy another home sooner
Short selling your home is a difficult decision, but getting a fresh start is a wise choice-especially when HAFA provides these important protections and benefits.