What is Short Sale?

Los Angeles CA homeowners who are having trouble paying your mortgage payment and those who were part of the HAMP program have yet another Federal program to try and help avoid foreclosure. This program is calledHAFA. HAFA stands for Home Affordable Foreclosure Alternatives Program and it is for eligible homeowners who did not qualify or had a difficult time paying their loan modifications in the HAMP program.

This program helps homeowners who are eligible to quickly and effectively implement a short sale or deed-in-lieu. Since the lenders will be given a financial incentive to be part of this program to help avoid foreclosures and the impact foreclosures have on a community neighborhood. Just one foreclosure in a neighborhood lowers the property value by 9%.

The HAFA program is for conventional , non Governmental mortgage loans. I was surprised to find that the lender collects 60% of the loan value on a Short Sale whereas on a Foreclosure the lender only collects 30%. Seems the lenders should not have needed an incentive from the Federal Government to implement this program…should have been their idea. Just sayin…

One of the benefits of the HAFA program for the troubled homeowner is that their debt is resolved and there will be no deficiency judgment.

First let’s talk about who is eligible and then talk about what this program will do to help you.

Homeowners must meet one of the following criteria in order to qualify:

You did not qualify for the HAMP program
You qualified but you didn’t complete your trial period
You had trouble paying your loan modification and missed at least 2 consecutive payments
You asked for a Short Sale or a Deed-in-Lieu

These are the loans that are eligible for the HAFA program:

Your property must be your primary residence
Or the property can be vacant for 90 days due to a job relocation (minimum 100 miles away)
Your mortgage is a first lien you took out on or before January 1, 2009
You are in default or it is inevitable that you will be
What you owe on your loan balance is equal to or less than $729,750
Your mortgage payment is more than 31% of your gross income

If your loan is guaranteed by Fannie Mae or Freddie Mac than you do NOT qualify for the HAFA program. There is talk that Fannie and Freddie may develop a program like HAFA.

The banks who support the HAFA program are:

Bank of America
Citibank
GMAC Financial Services
Wachovia
Wells Fargo

I know this is a lot to digest. Here’s a few more facts that are REAL WINNERS for everyone!

Standardized Forms for Short Sales with the Lenders
Investors waive their right to seek deficiency judgments
Dignified exit for homeowners with $3000 given at a successful Short Sale close of escrow for relocation (this may be taxable)
Cuts down considerably on the Short Sale timeline

As an experiences in negociate and helping my client to stop foreclosure on their home, I am here to help those you are having trouble paying their house payment to see if you qualify for a Short Sale.

Rosy Short Sale Our House In Just 11 Days!

When we called Rosy to help us sell our house – we were in a hurry.

I was in Foreclosure and my house was in auction to sell but Rosy was able to postpone my sale date on the last minute and it gave us time to try to save my home. I really appreciate what she has done and I have referred my friends to her and will keep doing so. Rosy and her team were very helpful and knowledgeable about this manner.

We had a buyer in just 11 days! Our short Sale approved in 60 days and sold.

Thanks Rosy! – The Tracy Family – (310) 598 9550

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An Equal Opportunity Company. Equal Housing Opportunity.All rights reserved.

An Equal Opportunity Company. Equal Housing Opportunity.
All rights reserved.