Understanding HAFA (Home Affordable Foreclosure Alternatives) Short Sales and how it can help Central Oregon home owners Part 1 - What is HAFA?
HAFA or the Home Affordable Foreclosure Alternatives (HAFA) is the newest program designed to assist home owners who are underwater on their mortgages. Through a short sale or deed-in-lieu, HAFA may allow Central Oregon homeowners to avoid foreclosure and receive a financial stipend when completing a successful short sale. In addition to helping homeowners avoid foreclosure HAFA, provides financial incentives to investors / lenders in order to encourage them to facilitate the short sale process in a timely manner, which we all know isn't happening now. For the purpose of this series of posts we will discuss the short sale option.
A short sale is when the lender allows the homeowner to sell the home for less than they owe on the mortgage.Allegedly, the HAFA program will streamline the short sale process for Oregon home owners through the following directives: 1. Complements HAMP (Home Affordable Modification Program) by providing viable alternatives for borrowers who are HAMP eligible. 2. Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis. 3. Allows the borrower to receive pre-approved short sale terms prior to listing the property. 4. Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement. 5. Requires that borrowers be fully released from liability for the debt. 6. Uses standard processes, documents and time frames.Provides financial incentives to borrowers, servicers and investors.
Please remember HAFA is not a law it is a guideline. Meaning.....your lender may choose not to follow the guidelines outlined in the HAFA program.
Your first step to starting the HAFA short sale process for your Central Oregon Home is to determine if you are eligible. Check out: Understanding HAFA (Home Affordable Foreclosure Alternatives) Part 2 - Am I Eligible?
If you're underwater in your Central Oregon mortgage or would like more information on ways to avoid foreclosure though a short sale, contact Kryste Adams at Taft Dire for FREE no obligation information.