HAFA Home Affordable Foreclosure Alternative
HAFA otherwise known as Home Affordable Foreclosure Alternative goes into effect April 5th, just before those taxes are do or that first extension.
HAFA is an extension of the Home Affordable Modification Program to help provide a default solution before the fun really begins. The plan is to have borrower first try to qualify for loan modification, but if this is not a solution the loan servicer will asses the possibility of a short sale through the HAFA program. Here is the quick and dirty of what to expect with HAFA.
1. Borrower will receive a pre-approved short-sale term in terms of list price or acceptable sale proceeds. This is currently one of the biggest road blocks in the short sales process, since servicers currently wait until after an offer to begin the valuation processs, which can take weeks if not months under the current system.
2. Once the sale takes place the Borrowers may receive up to $1,500 in relocation allowance. Servicers may also receive up $1,000 to defray costs. $3,000 of proceeds may be allocated to compensate secondary lien holders.
The biggest shift in the industry is the Banks are truly getting behind facilitating the short sale process. Both Bank of America and Wells Fargo are expanding their human capitol and technology to help streamline the process going forward.
In the past it seemed having Jimmy Hoffa on your team may have helped get that short sale through. Today the Banks, Sellers, and Real Estate Professionals all seem to be getting closer to being on the same page