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HAFA Sort Sale Foreclosure Alternatives - Matrix

Tuesday, August 7, 2012   /   by Ken Parker

HAFA Sort Sale Foreclosure Alternatives - Matrix

Here is some help with HAFA Basic Eligibility


Loans in Foreclosure


Program Exiration Date


Without Offer - HAFA Short Sale Agreement (SSA)


With Offer - Submitted Using an Alternative Request for Approval of Short Sale (ARASS)


Imminent Default (Past due less than 60 days)


Establishing Property Value


Disputed Valuations


Payments During Marking Period


Relocation Assistance - Up to $3,000


Second Lien Release Incentive - Up to $8,500


Deed in Lieu


Average Timelines - Without an Offer


Average Timelines - With an Offer









 




  

   




    
   
     

Home Affordable Foreclosure Alternatives (HAFA) Short Sale       Update


     

HAFA Supplemental Directive 12-02, effective June 1, 2012, impacts short sales with loans from non-government-sponsored enterprises in which the homeowner is eligible for the HAFA program.


     

Key enhancements include:


     
          
  • Time frame extended: The program has been extended to Dec. 31, 2013. The HAFA short sale or deed in lieu of foreclosure can be initiated up to Dec. 31, 2013;however, the transaction must have a closing date on or before Sept. 30, 2014.

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  • Eligibility updated: Occupancy requirements for HAFA eligibility have been removed; however, the property can't be owned or secured by a business entity.

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  • The second lien maximum has been increased from $6,000 to $8,500. 

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  • HAFA relocation assistance of $3,000 will be paid only to the primary resident (borrower or occupant) of the property at time the agreement is executed. The resident must vacate upon closing. Vacant properties are not eligible for HAFA relocation assistance.

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    • Nonborrowers (tenant, legal dependent, parent or grandparent) can now qualify if             occupying the property and must vacate upon closing.

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Additional information: 


     
          
  •  This policy is effective June 1, 2012, for new HAFA-eligible short sales initiated. It also applies to current HAFA short sales prior to closing.

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  • Tenants will be eligible only for the $3,000. Any money available from            additional incentive payout opportunities must be paid to the borrower. The            HUD-1 must reflect the breakdown.

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  • The borrower will be responsible for requesting and managing the tenant relocation assistance, including submitting required proof of occupancy and other documentation.

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Additional recommendations:


     
          
  • Help your financially distressed clients understand the benefits a HAFA short sale, including the relocation incentive. Review the agent HAFA  education guide to learn more.

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  • Provide the Bank of America non-GSE HAFA Eligibility FAQ to interested homeowners.

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  • Direct homeowners to contact Customer Care at 1.866.880.1232 if they have questions.

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Ken Parker, Broker
Ken Parker
16888 Nisqualli Rd #700
Victorville, CA 92395
760-794-7355
DRE# CalBRE# 1524222

Based on information from California Regional Multiple Listing Service, Inc. as of November 5, 2024. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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