As if we needed ANOTHER acronym, here comes HAFA!
Unveiled at the end of last year, the new HAFA rules will take effect April of 2010.
So what are these new federal guidelines?
The HAFA program is a baby brother of the Home Affordable Modificiation Program. I guess somebody up there finally got wise that no one was actually qualifying for a modification so a short sale was the next best thing!
Homeowners with a home underwater will be able to be approved for a short sale before they list a home, and receive up to $1500 moving money. They will also be fully released from future liability to repay the defaulted loan.
But not everyone must comply. It is purely a voluntary program and does not apply at all to any Fannie or Freddie loans.
Incentives for the big boys to play include: $1000 Fed money to cover their costs, and subordinate lien holders can receive up to $3000.
How will you know if you are eligible?
1. The home in question is your principal residence.
2. The mortgage was issued prior to Jan.1, 2009.
3. The mortgage is deliquent (Duh)
4. The current unpaid balance is equal to or less than: $729,750
5. Your monthly payment exceeds 31% of your gross income.
No matter what, these new guidelines, as well as the new & upcoming rules from Fannie and Freddie, will take some time to implement and fully comprehend. If you are looking to do a short sale, talk with your bank first, then include a Realtor with a CDPE designation to help you fill out your forms and get going on the path to a successful short sale!