Hafa Short Sale Guidelines and Rules - Quick Reference
Loan Eligibility Criteria for HAFA:
1.The loan must be secured by borrower’s principal residence (unless borrower had to relocate more than 100 miles away for employment reasons and have not purchased another property).
2.It must be a first lien mortgage originated prior to January 1, 2009.
3.The mortgage is delinquent or delinquency is reasonably foreseeable.
4.The unpaid principal balance is no more than $729,750, for a single-family residence (higher limits apply for 2-4 unit multi-family dwellings).
5.The borrower’s total monthly mortgage payment exceeds 31% of the borrower’s gross income.
After notification of potential HAFA eligibility, borrower has 14 days to ask for HAFA consideration
HAFA Incentive Compensation:
·Borrowers: $3,000 (relocation assistance)
·Servicers: $1,500
·Investors: $2,000 (maximum reimbursement for payments to junior liens)
·Junior Liens: $6,000 (but can be no more than 6% of the unpaid principal balance)
All lienholders who agree to participate in the HAFA short sale must release the borrower from all deficiency liability if the HAFA short sale closes.
Borrowers are eligible for HAFA if they are eligible for the HAMP program, but:
1.Do not qualify for HAMP.
2.Fail to complete a HAMP modification.
3.Do not accept a HAMP loan modification.
HAFA Short Sale Process:
1.If the borrower qualifies for HAFA, the servicer will send a Short Sale Agreement (SSA) to borrower, which is required to specify the minimum amount the lender must receive from the short sale.
2.The borrower has 14 days to return a signed SSA to servicer.
3.The listing period must be a minimum of 120 days and can be extended up to a maximum of one year.
4.When an offer is received, a Request for Approval of Short Sale (RASS) form must be submitted within three days, along with a copy of the offer and proof of funds for the buyer.
5.Servicers must accept or reject the offer within 10 days.
6.The buyer may not sell the property within 90 calendar days of closing of the short sale.
7.If an offer is received prior to a HAFA SSA being signed by the servicer and borrower, the borrower must submit an Alternative RASS form with the offer.
I believe that every homeowner should understand the options available to them to avoid foreclosure. As a real estate broker I have in-depth knowledge of home retention strategies and workout solutions that are available for consideration by your lender.
These options may include: Reinstatement, Loan Modification, Refinance, Forbearance, Short Sale, Deed-in-Lie of Foreclosure and Cash for Keys. I can help with sustainable home retention solutions, support, and education to homeowners who are facing financial challenges.
Our goal is to help our customers stay in their home. When retaining a home is not feasible or desirable from a customer standpoint, we provide education and work hard to deliver the most favorable terms and shortest turn-around time so that foreclosure can be avoided. Workout options that we facilitate include. Short Sales, Deed-in-Lie and Cash for Keys.
We do not charge an upfront fee for our service and there is never a fee to get assistance or information from your mortgage lender or servicer.
I urge you to call me at (800) 246-6354 for additional information on the options available to you. I assure you our conversation or interview will be confidential.