Need To Qualify For HAFA?
There seems to be ALOT of discussion on the site about the new HAFA short sale streamlining program that went into effect on April 5th. I figure at least we can try to keep some of the discussion together on here! The HAFA or Home Affordable Foreclosure Alternatives program is part of HAMP (Home Affordable Modification Program) and is an attempt to streamline the short sale process that went into effect April 5th 2010. Below we have also posted a general breakdown and information on the HAFA Short Sale Program Guidelines.
CLICK HERE for the complete version. Here is the "condensed" version we made up of the program, we now have a printable version of this breakdown along with a list of participating servicers and lenders on the preferred partners site!
***Program Update - Fannie Mae recently joined the HAFA program for short sales, follow this link for their specific docs and more information: https://www.efanniemae.com/sf/servicing/hafa/
12/18/10 Home Affordable Foreclosure Alternatives Policy Update- There were many new changes to the HAFA short sale program that just went into effect with this new supplement. We will update all general HAFA program guidelines shortly for our agents. There were some important improvements to the program -
1.) Verification of income is no longer required. In other words, borrowers do NOT need to prove that their payment is greater than 31% of their income. This is essentially a "stated income short sale"
2.) Property does not need to be occupied
3.) 2nd position lien holders WERE capped out to receive a maximum of $6,000 OR6% as a contribution from the 1st (whichever is less). They now removed the "6%" from the guidelines completely. (in other words, a $60K 2nd loan could NOW recieve up to $6,000 from 1st, where before the maximum allowed would have been $3,600).
Home Affordable Foreclosure Alternatives documents:
HAFA Short Sale Agreement (SSA)
HAFA Request for Approval of Short Sale (RASS)
HAFA Alternative Request for Approval of Short Sale
HAFA Deed in Lieu for Foreclosure Agreement
HAFA Data Dictionary
HAFA Form 4506-T Request for Transcript of Tax Return
HAFA Hardship Affidavit
HAFA Request for Modification and Affidavit (RMA)
Below is our basic breakdown of the HAFA government short sale program. For a complete HAFA training portal, including Fannie Mae and Freddie Mac HAFA guidelines as well as training on the HAP Military short sale program, see the CSSG Certified Short Sale Guide short sale training course.
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HAFA - Home Affordable Foreclosure Alternatives
In order to qualify:
Within 10 business days of receiving the RASS and all required attachments, the servicer must approve or deny the request and inform the buyer. If the request is disapproved, a statement of reasoning must be given.
The first mortgage lien must be released in accordance with local or state laws or regulations. If there are none set in place, the lien should be released within 30 business days from the date the servicer receives payment and satisfies the mortgage.
Reasons for Cancellation:
Please see the CSSG Online Training Designation for complete HAFA program trainingincluding Fannie Mae and Freddie Mac Guidelines, as well as training for the HAP military program.
Please do not copy or reuse this content in ANY way! This is copyrighted content of First Coast Realty Associates and The Short Sale Specialist Network.
What issues or concerns do you have with the HAFA government short sale program? Lets discuss ANYTHING to do with HAFA on here!
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