Bank of America announced their new Cooperative Short Sale Program. This program is officially being launched this month. The guidelines for this new program will be posted on our blog shortly.
New HAFA guidelines have been released and go into effect on February 1st, 2011. Below are the highlights and changes:
1) HAFA is now almost..a NO DOC short sale. Servicers are no longer required to verify a borrower’s financial information or determine if the borrower’s total monthly mortgage payment exceeds a 31% debt-to-income ratio. It seems that Treasury has wised up to the fact that it makes no sense to give a hoot about someones income to debt ratios when they are….selling the house.
“While this requirement has set the standard for mortgage affordability under HAMP, it is not as important for homeowners ready to transition out of their home,” a Treasury official said. “Eliminating this requirement further streamlines the process for homeowners applying to the program.”
2) Servicers still must obtain a signed hardship affidavit. So, even though short selling owners no longer have to prove their financial hardship…they must sign an affidavit stating they have a hardship. I am no legal eagle but, doesn’t this hardship affidavit sound utterly pointless?
3) Seconds now receive a max of $6,000. In other words, HAFA pays seconds up to $6000 to accept the short sale. I am assuming that the original HAFA rules still apply that the seconds (and firsts) can’t pursue any recourse if they accept HAFA money.
4) Borrowers must receive a HAFA Short Sale agreement within 30 days of submitting paperwork.
To find out if you or one of your clients qualifies for the HAFA program simply go to http://www.CheckYourEligibilityNow.com.
