Due to expire at the end of 2012, HAFA is now extended to the end of 2013!
This is a huge positive development for a program focused on helping distressed homeowners out of their mortgages while keeping their credit ratings intact.
But, that’s not all; there’s lots more good news…
- Removal of occupancy requirements. (Previously HAFA required homeowners to have lived in the property within the last 12 months.)
- $3,000 cash incentive to the home owner still applies. Now covers either owner OR tenant occupied properties at the time of sale.
- Secondary lien holder may receive up to a maximum of $8,500, up from $6,000 previously. This makes it easier to negotiate with the second who normally gets very little compared to the first.
- Payments can continue to be made to the loan servicer, even if they are over 32% of income, to stay current until sale
- Major Credit Reporting bureaus are changing the way they report a Short Sale to either “13” (Paid in full or closed account, zero balance) or “65” (Account paid in full, a forclosure was started as applicable)