The Making Home Affordable (MHA) program was introduced in 2009 to try and help stabilize the housing market by offering some alternatives to struggling home owners. Part of this program was the Home Affordable Foreclosure Alternative (HAFA) program, which provides homeowners with an incentive to do a short sale. When the program came out in April 2010 it was for the most part very unsuccessful. There were strict requirements and many servicers did not know how to get them done.
Today, however, most lenders and servicers have know how to process them and we are seeing a higher success rate. More and more homeowners are qualifying for this program and receiving the $3000 cash incentive which has helped many families through their hardship.
Benefits and Requirements of the HAFA Program–Updated March 2012:
- $3,000.00 in relocation assistance to the borrower at closing
- Full debt forgiveness on all mortgages (both 1st and 2nd)
- No promissory notes
- No cash contributions
- 2nd liens can now get up to $8,500. (It was $6,000).This provides consistency for all parties involved
- Submittal of a short sale package and HAFA application prior to having an offer to get the process started (this provides a head start)
- Foreclosure will be delayed for at least the duration of the approved HAFA period which is no less than 120 days
- The deadline for HAFA has been extended. A borrower now has until December 31, 2013 to submit a Short Sale Agreement or a written request for a consideration for a Short Sale Agreement to be eligible for HAFA.
- There are no longer any occupancy requirements for HAFA eligibility. (Before the update the property had to be occupied as the borrower’s primary residence at some point within the prior 12 months).
- Servicers can now accept a full payment if the borrower requests to make a full contractual payment in order to stay current on the loan.
If you want know if you qualify for the HAFA short sale program call Mike at 303-669-2744 x 5 or email Michael@taylorrealtygroup.net.