As of April 5, 2010 HAFA is effective. HAFA (the government’s Home Affordable Foreclosure Alternatives program) promises to streamline short sales. But whether it does or doesn’t remains to be seen.
Here are some of the HAFA basics.
o Short sales can be pre-approved within 30 days of a request
o Purchase contracts must be approved or denied within 14 days
o Forms are standardized
o Sellers must be released of all liability
o Seller’s receive $3,000 in relocation expenses
o Properties must be listed and commissions are protected
HAFA details are in Supplemental Directive 09-09 Revised as of March 26, 2010.
It is much too early to know how effective the HAFA short sale program will be but loan servicers now have specific procedures that they must follow and we real estate agents know what those procedures are.
June 7th, 2010 at 6:15 pm
Hello, I took your HAFA class about a month ago and forgot to ask. In the SSA Agreement that is sent to the homeowner, in the section that says “How Does a Short Sale Work?” listing under CLOSING, The last sentence states “In the event there is any money left over from the sale after paying the entire amount you owe on the mortgage plus the approved sale costs, you will not be eligible to receive the $3000.00.
Does this mean if the homeowner receives nothing if the sale proceeds exceed the approved short sale amount from the lender?
June 8th, 2010 at 9:06 am
That’s true. If there is any money left over it’s not a short sale so the seller does not get the $3,000. This usually not an issue but could be if the property is not too upside down.
June 8th, 2010 at 3:20 pm
Thanks for the clarification! That makes complete sense!