HAFA Update: Lots of Good News for Stressed Home Owners

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)
A homeowner can be current on their mortgage, qualify for HAFA, continue to make their payments, and execute a short sale with minimum impact on their credit!

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s