The U.S. Treasury announces a plan to simplify and expedite the Short Sale approval process called HAFA - Home Affordable Foreclosure Alternatives Program.
These HAFA alternatives are available for all HAMP-eligible borrowers who:
1. do not qualify for a Trial Period Plan
2. do not successfully complete a Trial Period Plan
3. miss at least two consecutive payments during a HAMP modification, or
4. request a short sale or deed-in-lieu
As is typical with government programs, this is all simply explained (note a trace of sarcasm) in an easy to read 43 page document (if you would like a copy please email ClientCare@ZOOMLossMitigation.com) or for those of you who prefer the shorter version, the summary is below.
Summary:
- Complements HAMP by providing viable alternatives for borrowers who are HAMP-eligible.
- 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 agreement.
- Requires that borrowers be fully released from future liability for the debt.
- Uses standard processes, documents and timeframes.
- Provides financial incentives to borrowers, servicers and investors.
