Redding CA - Short Sales - New HAFA Short Sale Guidelines--According to the Congressional Oversight Panel thus far only $4.3 million has been used for HAFA. Only 661 closed HAFA short sales have closed since the program launched.
The Treasury department is changing the HAFA eligibility requirements which may allow for a significant increase in HAFA Short Sales. The Changes: HAFA is now closer to a "NO DOC" short sale. Servicers are no longer required to verify a borrower’s financial information or determine if the borrower’s total monthly mortgage payment exceeds a 31% debt-to-income ratio.
It seems that Treasury has wisely realized that it is not reasonable to be concerned about someones income to debt ratios when they are….selling the house. While required for the HAMP loan modification program, it should not apply in a short sale.
Servicers still must obtain a signed hardship affidavit. Sellers in a short sale no longer have to prove their financial hardship. They are required to sign an affidavit stating they have a hardship.
The program will continue to pay seconds up to $6000 to accept the short sale. We would hope that the original HAFA rules still apply that the seconds (and firsts) can’t pursue any recourse if they accept HAFA money.
Borrowers must receive a HAFA Short Sale agreement within 30 days of submitting paperwork.
It is hopeful that streamlining the process will help more people receive the protection offered with the HAFA program, receive some incentive ($3000) for maintaining the home and being responsible in transitioning out of their situation. It seems a WIN/WIN, if only the banks will comply.
Redding CA - Short Sales - New HAFA Short Sale Guidelines--If you are facing foreclosure, you have options. Call today to learn about these options and how to best determine what is best for you and your specific situation.
I am Jeanean Gendron. I am HAFA Certified and I can help guide you through the process of learning about your options. You can reach me at 530 276-7417. I answer my phone.
I am HAFA Certified!
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