As most of you know, this is what I do everyday- Help homeowners who can no longer afford their homes exit from the home gracefully and create their fresh start, financially and emotionally! The most rewarding part of the short sale is when it is completed and I can see the relief the Seller has experienced, as if a huge weight was lifted off their shoulders and they can breathe again.
HAFA- as previously discussed, is the government short sale program- most of the major lenders are participating. It is still a short sale negotiated through your bank, however, there are some perks to the homeowner, benefits include:
- Lender accepts full satisfaction for the loan (meaning they cannot sue the Seller)
- Lender cannot ask for a promissory note (no loan for the Seller after the short sale)
- Up to $3000 to the seller for moving costs (this is the maximum)
- 120 days extra to sell the home (the foreclosure will be postponed- and you can live in your home for free for a longer time)
Now, for the HAFA Qualifications
- Hardship- there must be a reason that you cannot afford your home
- 1st loan must be originated prior to January 1, 2009
- Mortgage must be behind
- Mortgage balance is less than $729,750
- Mortgage payments are greater than 31% of the borrowers current gross income
- You must live in the home
HAFA works wonderfully if you qualify- this is still a newer program (started 8/1/2010), so there are some kinks to work out.
If you don’t qualify for HAFA, don’t fret, regular short sales still exist! In short sales we negotiate for the Seller to have all the above benefits of HAFA- with the exception of the moving costs paid by the Lender. Sometimes you can’t have everything. The goal of a short sale is to avoid foreclosure, negotiate with your Lender and own a home in another 2 years.
My client’s fresh start is my favorite part of my job. When I first meet with clients they are stressed, worried and feel stuck in a home they can no longer afford. Once we complete the short sale, they are on their path to a successful financial future, repairing their credit and purchasing a home 24 months later.
