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Watch a video on how the HAFA program can help you

by Maria Palacios & Chris Gonzales

We are memebers of this organization called CDPE - Certified Distressed Property Experts and below is a very informative video on how the HAFA program works and how it can help you...Remember that we are here to serve you with all your real estate needs. 

 

New HAFA program to help many struggling with their homes!

by Southern Californias Top Producing Mother & Son Te

Many have been asking us for details regarding the new HAFA program that was released to banks on April 5th.  We are very excited about this program so we wanted to make sure that we brought you all the details so that you can make an informed decision if you are currently struggling to stay in your home as many are across Southern California. 

It is a program that will help a lot of family's and two of the great benefits of this program is that, 1. It helps families with money for relocating if you are short selling your home, and 2.  Once you sell your home utilizing the HAFA program, the lending bank may NOT pursue the seller with a deficiency judgement.

READ ON...

What is HAFA?
HAFA directs lenders to assist eligible homeowners in quickly and effectively implementing short sales or deeds-in-lieu by providing financial incentives to lenders that carry out foreclosure alternatives through the program's guidelines.  The program was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures. HAFA in its current state is only applicable to conventional-type, non-Governmental Serviced Enterprises (non-GSE) mortgages and therefore does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.4 These organizations may have plans to release their own versions of HAFA.

Who is eligable for HAFA?
Most homeowners facing financial hardship are eligible. As a rule, if a homeowner is eligible for HAMP but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. However, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days if the borrower has met one or more of the following criteria1:

  • Does not qualify for a HAMP Trial Period Plan
  • Does not successfully complete a HAMP Trial Period Plan
  • Is delinquent on a HAMP modification by missing at least two consecutive payments
  • Requests a short sale or deed-in-lieu2

For a loan to qualify, it must meet the following criteria:

  • The property is the borrower's principal residence
  • The mortgage loan is a first lien mortgage originated on or before January 1, 2009
  • The mortgage is delinquent or default is reasonably foreseeable
  • The current unpaid principal balance is equal to or less than $729,750
  • The borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross income (as defined in HAMP Supplemental Directive 09-013)
  • The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac

Details of HAFA
HAFA was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways:

  • Compliments HAMP by providing viable alternatives for borrowers who are HAMP-eligible
  • Uses standard processes, documents and timeframes
  • Provides financial incentives to borrowers, servicers and investors
  • Requires that borrowers be fully released from future liability for the debt
  • Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis
  • Allows the borrower to receive pre-approved short sale terms prior to the property listing
  • Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement1

HAFA provides financial incentives as follows:

  • Homeowners qualify for $3,000 (updated March 26, 2010; was previously $1,500) in Borrower Relocation Assistance after a short sale or deed-in-lieu has been completed (may classify as taxable income in some cases2)
  • Financial incentives for servicers participating in the program include up to $1,500 (updated March 26, 2010; was previously $1,000) servicing bonus upon completion of a short sale or deed-in-lieu
  • Financial incentives for investors include up to $2,000 (updated March 26, 2010; was previously $1,000) for those who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. This reimbursement will be earned on a one-for-three matching basis3
  • Lenders pay all servicing fees — homeowners have no out-of-pocket expenses4

How to apply for HAFA?
Homeowners interested in utilizing foreclosure alternatives under HAFA are instructed to contact their lender if they meet the eligibility requirements and inform them of their desire to participate. Homeowners unsure of whether or not they meet eligibility requirements should contact us directly at 562-883-1003

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Photo of The Mother & Son Team - Maria Palacios & Chris Gon Real Estate
The Mother & Son Team - Maria Palacios & Chris Gon
Berkshire Hathaway HomeServices, California Properties
16911 Bellflower Blvd
Bellflower CA 90706
(877) 883-1003
Fax: 562-381-9113