Paying Homeowners to Short Sale with HAFA – North Scottsdale Real Estate
As part of the Government’s Home Affordable Modification Program (HAMP) the treasury department unrolled the Home Affordable Foreclosure Alternatives Program (HAFA) which will pay homeowners to sell at a loss. This is in an effort to encourage more troubled homeowners to go through a short sale rather than a foreclosure. HAFA starts April 5th, 2010.
$1500 to the home owner to ease their transition to a new home “relocation assistance”
Servicing bank will get $1000.
Another $1000 can go toward a second loan, if there is one
The payments come out of the $75 Billion mortgage modification plan. As well, the program is supposed to help streamline and standardize the short sale process.
Lenders and investment pools owning many home loans get more money from short sales
Community and the lender doesn’t have to deal with a vacant home (Up to 50% of vacant homes get ransacked)
Borrower gets assurance the lender will not sue for unpaid mortgage balance
Federal Program would require banks to accept offer if it is at or above the value assigned by a real estate agent
Borrower must prove hardship and that foreclosure is immanent
Here is the program outline from Home Affordable Modification Program:
https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf
Here is a Ney York Times article talking about Home Affordable Foreclosure Alternatives Program:
http://www.nytimes.com/2010/03/08/business/08short.html?pagewanted=all
