HAFA – Home Affordable Foreclosure Alternative – the idea is that if borrowers are eligible for the modification program BUT are unable to work out a plan to stay in their home, they – and their lenders – have a well mapped route for executing a short sale or a deed in lieu of foreclosure. The HAFA guidelines are voluntary, but major banks and servicers – including BOA , Chase, Wells Fargo and citmortgage – as well as dozens of smaller lenders are expected to participate.
To participate, a mortgage servicers must have opted into the government’s HAMP by the close of last year.
Which loans are Eligible?
HAFA provides short sale guidelines for loans NOT owned or guaranteed by Fannie Mae or Freddie Mac. The following conditions must be met:
The property is the borrowers principal residence
The mortgage loan is a first lien mortgage originaltaed on or before Jan 1, 2009
The mortgage is delinquents or default is reasonably foreseeable
The current unpaid principal balance is equal to or less than $729,750
The borrowers total monthly mortgage payment exceeds 31 percent of the borrowers gross income.
Allows borrowers to receive pre-approved short sale terms before listing the property.
www.floridarealtors.org/legalcenter/hottopics/upload/permissibleactivitiesrev092009.pdf
Tags: Financing, HAFA, Sellers, Short Sales
