Do you know about the HAMP and HAFA regulations? Are You Aware this takes effect on April 5, 2010?

In response to an outcry for Uncle Sam to step in and provide uniform procedures for helping homeowners stay in their homes. This is how the HAFA, Home Affordable Foreclosure Alternatives Program, was born. HAFA is part of the HAMP, Home Affordable Modification Program. This provides incentives in connection with a short sale or a deed-in-lieu of foreclosure used to avoid foreclosure on a loan eligible for a modification under HAMP.
HAFA:
* Complements HAMP and provides a viable alternative for borrowers who are HAMP eligible but unable to keep their homes.
*Uses borrowers financial and hardship info previously collected for a mod.
*Allows borrowers to receive a pre-approved short sale prior to listing.
*Prohibits lenders from reducing real estate commission ( 6% )
*Requires borrowers to be fully released from future liability for the first mortgage ( no deficiency judgement is allowed).
*Uses set standard processes, documents and timeframe deadlines.
* Provides financial incentives: $1500 for borrower relocation assistance; $1000 for lender to cover admin and processing cost and up to $1000 for investors for allowing a total of up to $3000 in short sale proceeds to be distributed to subordinate lienholders.
The program begins on April 5, 2010 and ends on December 31, 2012.

You need to know who is eligible.

Are you ready?

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Comments

  • How about someone who is not late, but is relocated due to job relocation? Will we not be able to short them anymore?
  • Updates to the HAFA program released 3/26/10 states that the lender incentive has been increased to $1500 and relocation incentive to homeowner increased to $3000. Our commissions are not guaranteed at 6% now; it will be up to the lender to decide what is reasonable. NAR is in the process of fighting this.
  • Several of the HAFA incentives were increase this last Friday the 26th. For example, the relocation assistance and the subordinate lien amounts were both doubled.
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