The US Treasury Department created the HAFA Program as an option for Homeowners that did not qualify for the existing HAMP-Home Affordable Modification Program. HAFA began on April 5, 2010 and is scheduled to end on December 31, 2012.
The HAFA Program works like this:
- Homeowner LISTS their Home with a Real Estate Agent
- HAFA PROGRAM sets a Price and Clear TIME LINE for the transaction to process
- Gives $$$ Incentives to the HOMEOWNER & LENDER upon Closing of Short Sale
HAFA PROGRAM INCENTIVES
- Homeowner receives $3000 at Closing of the Short Sale For Relocation Expenses.
- Lender must FORFEIT their right to pursue a Deficiency Judgment~
FULLY FORGIVING BORROWER OF UNPAID DEBT
- Loan Servicers receive $1500 for the Successful Completion of the Short Sale File
- Investors receive $1 for every $3 paid to the second position Lien holder up to a maximum of $2000 total.
- These MONETARY INCENTIVES provided by the US Treasury Department HELP all parties involved.
HAFA PROGRAM REQUIREMENTS
- Loan CANNOT be an FHA or VA Loan
- Property must be Borrower’s Primary Residence in the last 12 months
- Loan is a First Lien Mortgage
- Loan Originated BEFORE January 1, 2009
- Mortgage is Delinquent or Default is reasonably foreseeable
- Unpaid Balance is Less than $729,750
- Borrower’s TOTAL Monthly Mortgage Payments Exceed 31% of Gross Monthly Income