Home Affordable Foreclosure Alternative (HAFA)
December 2nd, 2012 Categories: Chico Sellers, Short Sales, Uncategorized
Home Affordable Foreclosure Alternative (HAFA)
The Government’s H.A.F.A.® Program benefits borrowers who short sale their homes.
On the official Government website for H.A.F.A.®, it simply states the following:
“If the cost of home ownership has become too expensive to bear, the Home Affordable Foreclosure Alternatives Program ® (HAFA) allows you to transition out of your home and avoid foreclosure with $3,000 in relocation assistance and peace of mind.”
The HAFA program also says: “In many cases, [a short sale] is the dignified exit strategy where the borrower can sell their home and avoid the negative impact of foreclosure on their credit report and return to a better financial position.”
What does this mean for Chico home owners?
The exciting news for underwater homeowners, is that there is now a federally sanctioned and endorsed alternative to foreclosure. Unlike foreclosure, with a H.A.F.A.® short sale you can be completely released from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount your lender receives for the property compared to what you still owe. This deficiency is guaranteed to be waived by your servicer and H.A.F.A.® covers borrowers in all 50 states.
We would consider it a privilege to help you research your options and provide you with the tools and the education that you need to make informed decisions, thereby ensuring the best possible short sale outcome for you and your family in Butte, Glenn and Tehama Counties. Yes! We have extensive experience in areas surrounding Chico such as Paradise, Magalia, Durham, Oroville, Orland, Willows and Corning!
| Discussion: Comments Off on Home Affordable Foreclosure Alternative (HAFA)
New Short Sale Rules Help Standardize Seller Cash Incentives
November 28th, 2012 Categories: Chico Sellers, Short Sales
Distressed homeowners may receive cash to move after their short sale!
On November 1, 2012 Fannie Mae and Freddie Mac launched a new, cohesive short sale program that offers several inviting incentives for a distressed homeowner. One important change is that a short sale may be allowed without the homeowner needing to have missed payments, and without the requirement of a repayment of the loan balance. A seller who has disposed of their home via short short can be on the road to credit recovery much more quickly as a result.
Fannie and Freddie has formerly processed short sales under varying sets of guidelines, and had their own versions of the Home Affordable Foreclosure Alternatives (HAFA) program, which provided a $3,000 relocation assistance incentive to a short sale seller. The guidelines, however, were restrictive, and a lot of distressed homeowners seeking a short sale did not qualify for the cash payments.
With the new guidelines in place, an owner occupant seller can receive a $3,000 relocation payment to assist with their relocation expenses with the following exceptions:
1. The seller (borrower) must contribute funds or execute a promissory note. **In California, most home sellers are protected from having to sign a promissory note or contribute funds.
2. The seller receives a Dislocation Allowance (DLA) or other government relocation assistance due to a military Permanent Change of Station (PCS) order.
3. The lender has knowledge that the seller is receiving relocation assistance funds from another source, in which case the $3,000 might be reduced by that amount.
Approximately half of mortgages in the United States are backed by Fannie or Freddie. Homeowners who have loans not backed by a Government Sponsored Entity (GSE) may be eligible for a short sale incentive offered by their bank.
BANK PROGRAMS:
Bank of America– B of A offers the HAFA program in addition to several others. The most popular program is the “Cooperative Short Sale Program” with an “Enhanced Relocation Assistance.” Payouts can be between $2.500 and $30,000. B of A’s program applies to their pre-approved short sales (a short sale that is given a preliminary thumbs up by the bank prior to the seller presenting an offer from a buyer). The value of the home is the basis for determining the incentive amount. According to the current program, the short sale has to close by September 26, 2013 to qualify for a cash payment.
Wachovia– Considered by some negotiators to be the most expedient and streamlined bank of all in terms of short sale practices, Wachovia may offer relocation assistance between $2,500 and $10,000.
Wells Fargo– Wells Fargo was offering relocation assistance between $10,000 and $20,000 to homeowners that complete a deed-in-lieu or short sale. The offer was only available on first deeds of trust owned by Wells Fargo.
Citimortgage– Citi may offer up to $12,000 as a short sale incentive on properties where Citi owns the loan. There are a variety of guidelines that determine how much a distressed homeowner may be entitled to.
Chase Bank– Chase has been known to offer incentives for a short sale up to $45,000. There are restrictions.
This is only a small sampling of banks participating in seller incentives. Be sure to call us (530) 864-5407 if you don’t see yours listed here. We’ll help you explore the options that might be available to you.
Cash incentives are being offered to home sellers to encourage short sales! Banks often do prefer short sales over foreclosure or loan modifications, and are actively working to increase the numbers of homes being sold via short sale. Short sales generally net the bank 10-25% more than they would gain via a foreclosure sale. It takes time and money to take back, maintain, market, and repair a property. It’s taken several years, but banks are beginning to streamline their short sale processes, and the option is one that is now appealing to more home sellers, buyers, and Realtors.
Need help with your Chico Short Sale?
We will help you explore your distressed property options in Chico. We service Butte, Glenn and Tehama Counties! For a confidential consultation with The Sandi Bauman Team short sale negotiators, call 530-864-5407 or email [email protected].
| Discussion: 1 Comment »
What Is HAFA?
November 10th, 2012 Categories: Short Sales, Uncategorized
“Home Affordable Foreclosure Alternatives” is a government sponsored initiative program overseen by he U.S. Territory Department and administered by Fannie Mae. Learn more here: www.makinghomeaffordable.gov/
Truth be told, there sometimes seems to be no rhyme or reason as to why a homeowner may or may not qualify for HAFA.
HAFA has it’s specific guidelines, which are easy enough to discern. In addition, most lenders have overlay guidelines that can change as often as we change our underwear.
[youtube]http://www.youtube.com/watch?v=8TXx8rKy-Ow[/youtube]
As Chico short sale negotiators, we will submit our client’s files for cash incentives available through HAFA or their specific lender(s). However, there can never be a guarantee of funds for a seller at close. The guidelines are always changing.
Let’s explore your options! For a confidential consultation with The Sandi Bauman Team short sale negotiators, call 530-864-5407 or email [email protected].
| Discussion: Comments Off on What Is HAFA?
