5/5/2012--When the weight of homeownership becomes too great, a short sale will help you move forward without the sting of foreclosure. The government sponsored Home Affordable Foreclosure Alternatives (HAFA) program provides powerful advantages to homeowners. If you are eligible for the HAFA Short Sale Program, you may have been solicited by your lender. This typically happens soon after a client has been denied for a Making Home Affordable loan modification.
The benefits of a HAFA short sale are the following:
1. The mortgage company works with you to determine an acceptable sale price upfront and you get to stay in your home while it is being sold.
2. If a HAFA short sale doesn't work, you may be able to give the title back to your mortgage company in a HAFA deed-in-lieu of foreclosure.
3. Once you complete a HAFA short sale, you must be released from your previous mortgage debt.
4. In most cases, HAFA has a less negative effect on your credit score than a foreclosure.
5. The homeowner receives $3,000 in relocation assistance at the close of escrow. 6. The homeowners also receives protections against the completion of a foreclosure sale while under review for the HAFA program.
Borrowers are encouraged to contact me immediately upon receiving a HAFA Solicitation since there is only 14 days to respond before they can proceed with foreclosure action. Also, if a notice of default has been filed, contact me immediately since, if there is a foreclosure sale date already on the property, Bank of America and many others are not allowing homeowners to qualify for the HAFA program so time is of the essence. The further along you are in the foreclosure process, the more difficult it is to get a successful resolution. To complete a short sale, you will need to work with a real estate professional like myself. I am HAFA short sale certified and have closed several HAFA short sales throughout the San Fernando and Simi Valley.
HAFA Program Summary
The Fannie Mae HAFA program simplifies and streamlines the use of short or "preforeclosure" sale and deed-in-lieu of foreclosure (DIL) options by incorporating the following unique features:
- Complements HAMP by providing alternatives for borrowers who are HAMP eligible (including borrowers facing imminent default);
- Utilizes verified borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis;
- Allows the borrower to receive pre-approved short sale terms prior to the property listing;
- Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement;
- Releases the successful HAFA borrower from future liability for the debt;
- Uses standard processes, documents, and timeframes;
- Provides financial incentives to borrowers, servicers and subordinate lienholders.
Homeowners can learn more about the federal government's Home Affordable Foreclosure Alternatives Program by visiting: http://makinghomeaffordable.gov/hafa.html.
If you are a homeowner who has been scammed, contact Brown's office at 1-800-952-5225 or file a complaint online at: www.ag.ca.gov/consumers/general.php.
Homeowners can also learn more about avoiding mortgage and real estate fraud by visiting the Department of Real Estate website at: http://www.dre.ca.gov/cons_alerts.html. A complaint form can be accessed online at: http://www.dre.ca.gov/frm_consumer.html.
"Short sale fraud appears to be the fraud of the moment, and it is proliferating statewide," according to Real Estate Commissioner Jeff Davi. "Consumers, licensees and lenders must all arm themselves with the tools necessary to avoid such scams."
Homeowners can file a complaint against a lawyer, a legal specialist or a company purporting to operate as a law firm with the State Bar by calling 1-800-843-9053 or visiting: www.calbar.ca.gov. Also, you can visit my Avoiding Foreclosure Scams page for helful tips.
Non-profit housing counselors certified by the U.S. Department of Housing and Urban Development are also available to provide free help to homeowners. To find a counselor in your area, call 1-800-569-4287. This information is provided by Los Angeles Short Sale Specialist, Jason Hector at www.jasonhector.com.
