Improvement in Real Estate Short Sales

Real estate short sales

The Home Affordable Foreclosure Alternatives (HAFA) program, announced in November 2009 and fully implemented April 5, is the government’s answer to the problem. It’s a supplement to the February 2009 Home Affordable Modification Program (HAMP) that outlines a separate set of criteria for short sales or deeds-in-lieu to address the group of homeowners who are facing foreclosure because loan modification hasn’t worked out.

HAFA provides that missing next step for homeowners who are not approved for modifications. Now, they can pursue a short sale in a more timely and orderly manner. Here are some of the ways the HAFA program is already improving the process.

–          Standardizes paperwork and timelines

–          Requires lender response on an offer within 10 days

–          Allows for preapproval on pricing of a short sale

–          Eliminates deficiency judgments on first mortgages

–          Offers $3,000 in relocation assistance

–          Pays servicers $1,500 toward administrative costs

San Diego California Realtors