HAFA PROGRAM REVISED AND EXTENDED

HAFA PROGRAM REVISED AND EXTENDED

In 2009, the Obama administration created the HAFA (Home Affordable Foreclosure Alternative) program.  The purposes for this government-sponsored initiative is to assist HAMP (Home Affordable Modification Program) eligible homeowners avoid foreclosure.   (How the government LOVES acronyms!)

Although both programs got off to a slow start, they are now actually helping distressed homeowners avoid foreclosure.   The latest iteration of the program eligibility requirements is less stringent, allowing more homeowners to qualify.  Program authors hope that more distressed homeowners will apply, taking advantage of the program and avoiding foreclosure.

The changes include:

• The most important change is the extension of the deadline for submitting for HAFA eligibility, from December 31, 2012, to December 31, 2013.
• The removal of the requirement that the homeowner had to have lived in the property within the last twelve months
• The $ 3000 relocation incentive is now limited to properties occupied by the owner or a tenant at the time of the short sale
• Mortgage payments may now exceed 31% of the homeowner’s gross monthly income. This will allow a homeowner to stay current on their mortgage and still qualify, minimizing that overall impact on their credit.
• Secondary lienholders may now receive up to a maximum of $ 8,500, up from the $ 6,000 previously
• The most dramatic change is that Credit Bureau Reporting will not be Account Status Code 13 (paid or closed account/zero balance) or 65 (account paid in full/a foreclosure was started), which ever is applicable.  HAFA approved short sale sellers will have less of a negative blemish on their credit report, much better than a foreclosure.

The hope is that a distressed homeowner can remain current with their mortgage payments, qualify for HAFA, continue to make their payments and execute a short sale with a minimum impact on their credit!  An excellent final result. 

For more information, select this link to the HAFA web site:

http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx

If you are a distressed homeowner in the greater Sacramento area and need assistance, contact us at (916) 337-0658 or e-mail Mike@SellYourVilla.com  

                               We are here to help!