9 Vital Points of HAFA

  1. HAFA is for 1-4 unit properties with loans originated before January 1st, 2009, and may be tenant-occupied or even vacant
  2. The amount owed on the 1st lien cannot exceed $729,750 for a single family residence (see www.makinghomeaffordable.gov for 2-4 unit guidelines)
  3. HAFA offers the benefit of pre-establishing the market value of the property from the investor’s standpoint, although not all investors or servicers will provide this market figure to the Listing Agent.  Regardless, the investor establishing value before an Offer is in place means less processing time down the road
  4. HAFA staves off foreclosure for 120 days while the property is being marketed and sold
  5. HAFA makes 2nd lien negotiations smoother with PARTICIPATING lien holders, as they MUST accept a maximum of $8,500 to resolve their lien
  6. Sellers or Tenants may receive $3k at closing under HAFA towards relocation expenses, however if the property is vacant at closing an incentive may not be offered
  7. Sellers may use their incentive to pay any costs of the sale EXCEPT junior liens or 3rd party fees; example: delinquent HOA dues that have not yet become a lien may be paid, but a 3rd Party Negotiator may not
  8. HAFA credit reporting MAY have lesser impact than a traditional short sale
  9. Additional Investor guidelines may apply, including but not limited to:
    1. Not accepting a HAFA application initiated with an Offer in place
    2. Not accepting a HAFA application when a foreclosure sale could reasonably be within 60 days of the application
    3. Whether a Seller may be current on their mortgage when applying
    4. Whether Sellers need to make payments during the marketing period

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