Home Affordable Foreclosures Alternatives, or HAFA, went into effect April 5. HAFA encourages short sales to avoid home foreclosures.
Under HAFA, banks must decide within 10 business days whether to approve or deny a requested short sale under the program. Banks already have an inventory of 1.1 million foreclosed houses, recent estimates by LPS Applied Analytics of Jacksonville, Fla., show. Many more will be heading for a short sale or foreclosure. The Mortgage Bankers Association said more than 9 percent of homeowners were behind at least one payment on their mortgages in the fourth quarter. LPS figures 4.8 million are delinquent or already in the start of the foreclosure process. The HAFA program can t reach many of those houses. Lenders participating in the federal government’s effort to encourage mortgage relief for distressed homeowners.
This limit of 10 days is a good thing. The last thing we need are those that approve or deny us taking their time with payments like when those that stopped paying their mortgages back in 2007!
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