We have already received specialized, in depth training on this new program and will briefly summarize the features and benefits below:
Qualifying Factors
- Must be HAMP eligible
- Principal residence only (must be living there, with 1 allowable exception)
- 1st lien mortgage originated prior to 2009
- Mortgage balance less than $729,750
- Mortgage payment exceeds 31% of monthly gross income
- Not a Fannie Mae or Freddie Mac backed loan
Here are the Fannie and Freddie loan look-up tools:
Fannie Mae Loan Lookup
Freddie Mac Loan Lookup
How is the HAFA program different or better than what is being done now?
The main problem, for both sellers and buyers, with traditional short sales was that they took too long and the process was wholly unpredictable. It was always difficult to keep buyers interested in, and committed to, the process. The HAFA program was designed to speed up and standardize the short sale process and give incentives for each short sale completed. During a non-HAFA short sale, there is no government incentive for banks to help you. Also, a VERY important benefit to homeowners is the requirement that participating lenders release you of any further libility for the deficiency amount!
What are the incentives?
- As a qualifying homeowner, you would be entitled to a $3000 "relocation" incentive payment at the time of closing and funding of your short sale.
- Servicers participating in the program will receive $1,500 for a completed short sale
- Investors (lenders) can receive up to $2,000 for payments made to junior lienholders
- Junior lienholders can receive up to $6000
Yes, but it won't cost you anything. Under HAFA, our fee will be deducted from the sale proceeds and paid by the lender. It is a requirement of a HAFA short sale that you work with a real estate professional throughout the HAFA short sale process. The Jackson Realty Group is now the areas HAFA specialists, having received the most up-to-date training available on the HAFA program.
Also, any time there is a new program announced, there are people who set up scams based upon the publics ignorance of the details, and the HAFA program will be no different. Other than an attorney you may hire to assist with a pending foreclosure or associated issue, beware of anyone requesting "up front fees" to assist you in processing a HAFA short sale. MakingHomeAffordable.gov (MHA) provides the following guidelines:
• Beware of anyone who asks you to pay a fee in exchange for counseling service or modification of a delinquent loan.
• Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes.
• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can "save" your home if you sign paperwork or transfer over the deed to your house.
• Never make a mortgage payment to anyone other than your mortgage company without their approval.
• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
If you would like to meet with me to discuss if you may qualify for this program and to review the process as well as your options, please call me at 561-602-1258 or CLICK HERE and send me an email with your contact information.
