Its much too detailed to get into in this forum, however, to read the full HAFA text, CLICK HERE.
Some basics on the program:
HAFA stands for Homeowner Assistance Foreclosure Alternative program. HAFA is a part of the government created HAMP program, which stands for Homeowner Assistance Modification Program.
To be enrolled in HAFA, you must first go thru HAMP and be denied a loan modification under HAMP.
Who participates in HAMP/HAFA? Well, as announced today in DSNews.com just about every servicer, including those serving loans for Freddie Mac and Fannie Mae, are included in this process.
There are several pros and cons to this programs. Some of them are below:
Pros -
- An alleged 10 day timeframe for approval, once an "acceptable" offer is received
- Similar to FHA short sales, the servicer will give the homeowner an acceptable sales price and list price.
- Standardized process for all servicers, should make negotiatons smoother.
Cons -
- If no short sale can be worked out, the sellers agree UP FRONT to a deed-in-lieu
- Seller must make payments of 31% of their gross income
- Seller must be enrolled in HAMP, and be denied a loan modification to be allowed into HAFA
- No re-sale of the property for 90 days (big con for us investors)
and much much more....
Again, To read the full HAFA text, CLICK HERE
If you would like us to come to your office or you to ours for a presentation on HAFA, let us know. Leave a comment, or visit our website at http://www.psomich.com!
