Requirements for qualifying for the HAFA incentive program:
*91% of people who didn't qualify before for the HAFA program now are eligible for it. *
A borrower's reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months before certain dates in the HAFA process but may not have purchased another home.
Servicers are not required to determine if the borrower's total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.
Servicers are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii) Alternative Request for Approval of Short Sale, and (iii) a signed Hardship Affidavit.
If an unsolicited borrower requests HAFA, the servicer has 30 calendar days to determine the borrower's eligibility and, if eligible, send the borrower the Short Sale Agreement.
HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect.
The benefits of HAFA for the Seller continue to be:
No deficiency judgment
No seller contribution or promissory note
$3,000 relocation payment to seller
For more information on it please fill out the form on this page for a report titled "Most Common Short Sale Questions asked by Buyers and Sellers"
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