If you are unfamiliar with HAFA (Home Affordable Foreclosure Alternatives), it’s a program through the Federal Government to help homeowners avoid foreclosure. Read more about it here
With close to 11 million homeowner’s underwater homeowners and continued complaints to the treasury department about issues with the HAFA program the treasury department has finally listened and made some changes to the HAFA program. The changes made reflect making the process easier and hopefully will help benefit us all. I think one of the best changes is that a decision has to be made in 30 days. I will keep you updated to the progression of this program as it is fairly new. In the meantime below are the changes that have been made:
-HAFA no longer requires that servicers verify the borrowers finances
-HAFA no longer requires servicers to determine if the borrowers monthly payment is higher than a 31 percent debt-to-income ratio.
-HAFA no longer requires second-lien holders to agree to accept 6 percent of the unpaid principal balance owed them, up to $6,000. Servicers now decide who gets paid how much, with a cap still at $6000.
-HAFA now requires borrowers seeking a short sale get an answer/agreement within 30 days.
I will keep you updated as to the changes, for more info on short sales and REO’s please feel free to search through the blog, and as always if you need help negotiating any short sale contact me and I will help you!