We’ve been waiting for this news. Fannie Mae and Freddie Mac have announced they will join in the Treasury’s HAFA (Home Affordable Foreclosure Alternatives) program with some modifications. These programs allow short sales to be pre-approved for eligible borrowers.
The US Treasury’s HAFA program became effective on April 1st and is now showing signs of success.
The eligibility criteria are:
• Personal residence
• 1st mortgage originated prior to 1-1-09
• $729,750 balance or less
• Financial hardship
• Delinquent or default reasonably foreseeable
• Monthly payment exceeds 31% of gross income
Until now the HAFA program was not available for Fannie or Freddie loans.
On June 1st Fannie and Freddie announced they will be participating in HAFA but the eligibility criteria are somewhat different. The government directives are quite lengthy and it will take a little time for me to decipher them. I will post more info as I learn it. These programs go into effect on August 1st so all real estate pros need to get up to speed.
Every real estate agent who has or is about to take a short sale listing should determine if the seller is eligible for one of the HAFA pre-approved short sale programs.
The HAFA Directives and HAFA course offerings are available on Hogan School’s web site
Fannie Mae HAFA: Fannie Mae HAFA Bulletin