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The HAFA Program – Short Sale Modifications Continue…

December 23, 2009 By

You have probably already seen or heard on TV or in the mass media the state of our current market and some of the changes that are on the way… What you may not know is the specific changes set to take place for Short Sales. C.A.R. (California Association of Realtors) has put out a great summary of what is to take place this next April.

  • The HAFA program simplifies and encourages short sales and deeds in lieu of foreclosure. It will permit pre-approved short sale terms before a property is listed; release borrowers from future liability for the debt; provide financial incentives to borrowers, servicers, and investors; and prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval.

  • Under terms of the program, the borrower and/or listing broker have three business days to submit an executed purchase offer and related documents to the servicer on a short sale, and the servicer has 10 business days to respond to an executed purchase offer.

  • The servicer also will determine the minimum net proceeds for a short sale. If an offer presented to the servicer by the borrower or listing broker meets the net proceeds requirement, then the servicer must accept it.

  • The program currently is available only for non-Fannie Mae- or Freddie Mac-owned loans up to $729,750 and is scheduled to take effect April 5, 2010. However, C.A.R. expects that many lenders will choose to implement it before the deadline.

    • While there is some vague language… I’m hopeful that this program will help more homeowners stay in their homes or get the help they need.    What are your thoughts?

    Filed Under: first time home buyers, Selling your Home, Short Sale Updates, What's New?

    About Jeffrey Simons
    For the last 14 amazing years, I have consistently helped entry level buyers, distressed homeowners (short sales) and move up home owners as a trusted adviser. I work with a highly competent, high tech, focused group of business professionals which include a very knowledgeable mortgage consultant offering 29 years of expertise and experience, a tenacious escrow officer, the most experience title representative I have ever met, in addition to an extremely well rounded inspector, a real estate appraiser, and an incredible transaction coordinator. My teams ultimate and only goal is to make your move enjoyable and memorable. I specialize in Anaheim Hills and the surrounding cities throughout the magnificent communities of North Orange County.