Shelli Dore’s Real Estate Blog

Posts Tagged ‘HAFA

Home Affordable Foreclosure Alternatives (HAFA) was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways: 

  • Compliments the Home Affordable Modification Program (HAMP) by providing viable alternatives for borrowers who are HAMP-eligible
  • Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis
  • Allows the borrower to receive pre-approved short sale terms prior to the property listing
  • Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement
  • Requires that borrowers be fully released from future liability for the debt
  • Uses standard processes, documents and time frames
  • Provides financial incentives to borrowers, servicers and investors

HAFA provides financial incentives as follows: 

  • Financial incentives for lenders participating in the program include a $1,000 servicing bonus
  • Homeowners can receive up to $1,500 in relocation assistance (which, in some cases, may classify as taxable income) after a short sale or deed-in-lieu has been executed
  • Lenders pay all servicing fees – homeowners suffer zero out-of-pocket expenses

If you (or someone you know) are a homeowner looking for answers, or would like to determine if you qualify for HAFA, contact me at 303-942-0648.  I’m here to help.  

Sources:

HousingWire “Treasury to Announce New Program to Avoid Foreclosure” (2009): http://www.housingwire.com/2009/10/12/treasury-to-announce-new-program-to-avoid-foreclosure/

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Shelli Dore

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The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative led by the US Treasury Department assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales or deeds-in-lieu.

First introduced November 30, 2009 in Supplemental Directive 09-092 as part of the Home Affordable Modification Program (HAMP), HAFA assists eligible homeowners in quickly and effectively implementing short sales by providing financial incentives to lenders that work in conjunction with HAMP to assist homeowners in need.

The program was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures. HAFA in its current state is only applicable to conventional-type, non-Governmental Serviced Enterprises (non-GSE) mortgages and therefore does not apply to loans owned or guaranteed with Fannie Mae or Freddie Mac. These organizations may have plans to release their own versions of HAFA.

If you (or someone you know) are a homeowner looking for answers, or would like to determine if you qualify for HAFA, contact me at 303-942-0648. I can help.

Sources:
• 1Making Home Affordable “HAMP Supplemental Directive 09-09” (2009): https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

• 2HousingWire “Treasure to Announce New Program to Avoid Foreclosure” (2009): http://www.housingwire.com/2009/10/12/treasury-to-announce-new-program-to-avoid-foreclosure/

• 3HousingWire “Treasure to Announce New Program to Avoid Foreclosure” (2009): http://www.housingwire.com/2009/10/12/treasury-to-announce-new-program-to-avoid-foreclosure/

Share this with your friends and family…

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Your friend in the real estate business,

Shelli Dore

Friend me on Facebook!

Connect with me on LinkedIn!

Follow me on Twitter!

…Remember! The next time you are in a conversation with someone who is thinking about a move – IN ANY CITY OR STATE IN THE US OR CANADA – call me first! I can help make sure your friends, family members and work associates are very well taken care of.


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