HAFA Short Sales provide relief for Orange County homeowners.

Good news for Orange County homeowners who may be trapped in today’s mortgage crisis. The Federal Government just released in April of this year, the new Home Affordable Foreclosure Alternative, which is called the HAFA Program for short, and is administered by Fannie Mae. This new program is the Obama administrations latest effort to help mitigate the high volume of Foreclosures that are damaging the real estate market. The primary purpose of the HAFA program, is to encourage both banks, and homeowners who are unable to keep there home, to choose a Short Sale, versus letting the property go to Foreclosure. Many studies have shown that a Short Sale is better for the banks for there losses are less as compared to Foreclosure. And a Short Sale is better for homeowners as well. The other purpose of the HAFA program was to help streamline the Short Sale process, which has shown to be a lengthy and difficult process in some areas.

This new HAFA Program offers financial incentives to both banks and homeowners in Orange County, and elsewhere throughout the country. Below is a list of some of the major provisions and benefits of the HAFA program:

A.  The HAFA program is an extension of the Home Affordable Modification Program (ie: HAMP program), by providing an alternative for homeowners who have been declined for a HAMP loan modification.

B.  The HAFA program provides financial incentives to the banks in order to encourage them to cooperate with a short sale, versus Foreclosure. The 1st Trust Dee lender is offered $1,500 by the Federal Government, and the 2nd Trust Deed lender is offered a financial incentives as well. Orange County home owners are also offered $3000 to help with relocation costs.

C.  At the successful completion of the HAA short sale, the property owner is to be released of all future liabilities, and the banks cannot require language that would allow them to purse a “Deficiency Judgment”. The lenders may not ask for the property for a cash payment, or a promissory note to pay I the future.

D.  As part of the streamlining process, the HAFA program allows realtors and homeowners to obtain pre-approved short sale pricing and conditions, which greatly speeds up the entire short sale process.

E.  Another provision to speed up processing is that the financial documents and hardship paperwork gathered during the HAMP loan modification process is used for the HAFA short sale processing.

F.  The negative effects of a HAFA short sale t a property owners FICO score are much less than compared to a foreclosure. After a HAFA short sale, the only items reported are late payments, and a report showing paid or negotiated. These credit report effects can be as short as 16 months. In addition, an Orange County homeowner who does a short sale will be eligible for a FNMA backed mortgage within 2 years.

G.  A Orange County homeowner is also allowed to live in their home during the marketing and escrow period as in a tradition sale.

For more information about the HAFA short sale program and it’s benefits for Orange County homeowners, visit our website at:  gotHAFA.com  …  or call us at: (888) 201-7066