HAFA Short Sale

Alternatives to Foreclosure – HAFA Short Sale Program

To reduce the number of home foreclosures, the U.S. Treasury Department introduced a federal government program that streamlines the SHORT SALE process, while removing mortgage-related liabilities for people unable to keep their homes.

The Home Affordable Foreclosure Alternatives (HAFA) program started April 5, 2010 and ends December 31, 2012.

HAFA is designed for homeowners who have applied to the Home Affordable Modification Program (HAMP) for assistance but have not had success with their loan modification program, and for homeowners who have requested a HAFA short sale or deed-in-lieu.

To participate in HAFA, you must still meet HAMP’s eligibility criteria:

• Home is principal residence
• First-lien mortgage is in delinquency or default is reasonably foreseeable 
• Loan closed before January 1, 2009
• Unpaid loan balance is under $729,750 
• Mortgage payment is over 31% of gross income  

Your possible benefits when participating in HAFA U.S. government program Short Sale: 

• $3,000 relocation incentive paid at closing.
• Allows you to sell with no out-of-pocket expenses.
• Reduces future liability and tax implications.
• Credit impact can be far less severe then as compared to a foreclosure.
• Mandatory release from future liabilities related to your first mortgage, including cash contributions, promissory notes and deficiency judgments.
• Subordinate lien holders that receive HAFA incentives must also agree not to pursue deficiency judgments. 
• You will qualify as prospective home buyer again in three years or less.

Contact us now to find out about short sale and whether HAFA Short Sale is right for you.

Thanks for contacting us about homes and properties at Orange County, California, and we are here to help you.

Harrison K. Long - solutions for real estate and business -  REALTOR and broker associate, GRI, Coldwell Banker Residential Brokerage - 949-854-7747 (phone) – ExploreProperties@gmail.com (email) -  CA DRE 01410855 – SFR short sale and foreclosure resource certified by the National Association of Realtors.

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This is for information only about HAFA government short sale program and is not the providing of legal or tax services.