Orlando Real Estate

HAFA Short Sales

August 22nd, 2011 11:56 AM by David W. Welch

First things first, everybody asks what does HAFA stand for. I always say that it means "I hafa sell my house, but it's worth hafa what I paid for it." Actually, HAFA is an acronym for Home Affordable Foreclosure Alternatives. I think my little saying is closer to reality than the actual name. The Home Affordable part makes no sense, because the program establishes a somewhat standard process for banks to handle short sales or deed in lieu alternatives to foreclosure. It is not really making home more affordable at all. There are a few guidelines that you must meet to qualify for the program.

Eligibility*

You may be eligible to apply if you meet all of the following:

  • You live in the home or have lived there in the last 12 months.
  • You have a documented financial hardship.
  • You have not purchased a new house within the last 12 months.
  • Your first mortgage is less than $729,750.
  • You obtained your mortgage on or before January 1, 2009.
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA. (copied this directly from the government website www.makinghomeaffordable.gov/)

If you are thinking about a short sale, and you meet all these criteria, then contact your lender. You may be able to pursue a pre-approved short sale. The benefit of getting pre-approved under HAFA is that when you list your house, the lender will tell you what price they will accept. When you get an acceptable offer on your home, you should be able to expect a quick approval from your lender. If this all goes as planned, you have a much better chance of actually closing your short sale. Be prepared for the "run-around." I have a couple I am working with that has been working on their pre-approval with Bank of America since March.

David Welch Real Estate Optimist, Orlando Real EstateAny Home-Any Phone

Posted in:General
Posted by David W. Welch on August 22nd, 2011 11:56 AM

Archives:

Sites That Link to This Blog:

);