Kim D'Elia - EXIT Realty Partners

HOME AFFORDABLE FORECLOSURE ALTENATIVE
HAFA – SHORT SALE

What is a HAFA Short Sale?  This is avoidance of foreclosure, the elimination of mortgage debt and possible $3,000 relocation assistance.  

Why Should I Short Sale my home vs. Foreclosure?   A borrower may be eligible own a home again sooner through a short sale then a foreclosure.   Borrowers may be able to buy again by re-establishing a credit history as soon as 2 years after a short sale vs. 7 years after a foreclosure. 

Is the HAFA short sale process different then a normal short sale?  Yes, with a HAFA Short Sale the process is the same with every lender.  This alls the borrow to receive pre-approved short sale terms prior to listing the property through the Request for Modification Affidavit (RMA), and it uses Standardized documents. 

How to I find out if I qualify for a HAFA Short Sale?  First you must determine who owns your loan.  Is this a Fannie Mae, Freddie Mac or non-GSE?   Below is a link to look up who has your loan:

Service Look Up:  www.Makinghomesaffodable.gov/contact_servicer.html

Fannie Mae:  www.Fanniemae.com/loanlookup

Freddie Mac:  www.Freddiemac.com/mymortgage

BASIC HAFA ELIGIBILITY CHECKLIST:

  • Must be or recently have been borrower’s principal residence;
  • Property has been primary residence in the last 12 months
  • Loan must be delinquent or default (60days) with Feddie Mac but does not have to be delinquent for Fannie Mae.
  • Borrower can not have cash reserves that are equal or over three months total monthly payment and/or $5,000 which ever is greater. 
  • Borrower’s 1st loan  monthly mortgage payment must be greater then 31% of their gross income.
  • Principle residence / owner occupied and or vacated within 90days due to 100+ mile move for employment reasons.
  • First loan must have originated on or before January 1, 2009
  • Borrow must be able to show financial hardship
  • Borrower’s current unpaid 1st loan principal balance is equal to or less then:
  • 729,750 for a single family
  • 934,200 for a two unit
  • 1,129,250 for a three unit
  • 1,403,400 for a four unit

 

The also offer a Deed in Lue Program as well