The Obama adminstraton’s HAFA Program provides additional tools to help struggling homeowners who aren’t able to keep up with their mortgages. This is basically a short sale program where the lender and the borrower are incentivised to cooperate with the process.
The Treasury’s HAFA Program is set to begin on April 5, 2010 under the following qualification guidelines:
-Borrowers must have been considered for other foreclosure prevention options including loan modification.
-Borrowers must meet meet HAMP eligibility.
-Borrowers can be either delinquent or current on their mortgage payments.
-Servicers will set monthly mortgage payment during the marketing period. This payment is not to exceed 31% of the borrowers gross monthly income.
-Servicers receive a $1,000 incentive for short sales or a deed-in-lieu of foreclosure.
-Borrowers receive $1,500 in relocation assistance.
-Borrowers are released from first mortgage lien within 10 business days from the date the servicer receives the sale proceeds.
There is just a brief introduction to HAFA, and you can expect a short video soon with more information. In the meantime, if you or anyone you know may possibly qualify for this program, or if you just have questions, give us a call. We are centered in Huntington Beach and can help if you are located in all areas of Orange and Southern LA Counties. If you are in some other part of the country and don’t know an experienced realtor to contact, give us a call and we can refer you to an expert in your area.