Here are the points covered by BofA Representatiives during the July 28th, 2010 Webinar::
- For the most part HAFA Short Sales require same type of documentation: Hardship Letter, Financials, Last 2 Years of Tax Returns, Last 2 Months Bank Statements, Last 2 Check Stubs etc.
- 2nd & 3rd lien pay-offs are limited to $6,000 or 6% of unpaid balance.
- Under the HAFA program, homeowners receive $3,000 for relocation expenses at close of escrow. Each servicer receives $1,500 as an additional incentive.
- HAFA is designed for homewoners who did not qualify under the HAMP (Loan Modification) Program.
- Short Sales under HAFA eliminate the possibility of Deficiency Judgments (amount "forgiven" or not paid to lenders).
- Home must be owner-occupied. BofA does offer other Short Sale programs for investors.
- While a Standard Short Sale in progress can be converted to a HAFA Short Sale, when possible it is recommended that the HAFA Short Sale be approved in advance by the bank.
- The homewoner will select the Short Sale Broker/Agent, not the bank.
- BofA HAFA Short Sales are now being initiated/tracked in the Equator website. This change has significantly improved agent/negotiator communication & has made process faster & more transparent.
- Under HAFA, the initial listing period will be 120 days. If the home does not sell, an extension could be granted or a Deed in Lieu would be considered by the lender.
- Under the HAFA guiduelines, after a Short Sale Offer is received by the bank, the goal is to provide an answer in 10 days or less.
For more information on the HAFA program, visit http://makinghomeaffordable.gov/hafa.html
You can also e-mail me your questions @ reoprorealty@gmail.com
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