UNDERWATER IN MORTGAGE SERIES… PART II –
HAFA PROGRAM
(HOME AFFORDABLE FORECLOSURE ALTERNATIVE PROGRAM)
HAFA program is an alternative to foreclosure, sponsored by the treasury department, and allows a home owner to walk away with $3,000 for moving expenses. Program will sunset / expire December 31, 2012.
It is not necessary for a homeowner's mortgage to be in default to qualify. However, there must be a documented hardship as to why foreclosure is imminent. This may include decrease in income, illness, family member illness, job transfer more than 100 miles, etc.) Property must be owner occupied with evidence of a utility bill.
Once a home owner realizes they cannot hold on any longer, it’s in their best interest to initiate communication with their lender and request to apply for the HAFA program. Don’t accept “NO” for an answer. It’s good to start the process before listing the house for short sale. Here are the steps that follow:
1. Lender(s) will require personal paperwork (2 pay stubs, possible tax returns, hardship letter, 2 bank
statements, etc.)
2. Lender will order a BPO (Broker Professional Opinion) or an appraisal to determine the market value of the
property
3. Lender will notify the seller of the results, so it can be marketed at the “approved” price
4. Property is then listed with a Realtor, and contract induced. 120 Days are allowed for marketing. Once
contract is submitted to the lender, they have only ten (10) days to accept the contract and allow a closing.
5. At the closing, seller will received $3,000 toward moving expenses, etc. (We just had a closing last week
where the seller’s lender paid the seller an additional $10,000 to sell via short sale, on a $95,000 purchase
contract!). This did not include $3,000 from HAFA.
Call us to discuss your situation if you are struggling…. There are options !
Tom Brubaker,
813-493-2913
HAFA PROGRAM
(HOME AFFORDABLE FORECLOSURE ALTERNATIVE PROGRAM)
HAFA program is an alternative to foreclosure, sponsored by the treasury department, and allows a home owner to walk away with $3,000 for moving expenses. Program will sunset / expire December 31, 2012.
It is not necessary for a homeowner's mortgage to be in default to qualify. However, there must be a documented hardship as to why foreclosure is imminent. This may include decrease in income, illness, family member illness, job transfer more than 100 miles, etc.) Property must be owner occupied with evidence of a utility bill.
Once a home owner realizes they cannot hold on any longer, it’s in their best interest to initiate communication with their lender and request to apply for the HAFA program. Don’t accept “NO” for an answer. It’s good to start the process before listing the house for short sale. Here are the steps that follow:
1. Lender(s) will require personal paperwork (2 pay stubs, possible tax returns, hardship letter, 2 bank
statements, etc.)
2. Lender will order a BPO (Broker Professional Opinion) or an appraisal to determine the market value of the
property
3. Lender will notify the seller of the results, so it can be marketed at the “approved” price
4. Property is then listed with a Realtor, and contract induced. 120 Days are allowed for marketing. Once
contract is submitted to the lender, they have only ten (10) days to accept the contract and allow a closing.
5. At the closing, seller will received $3,000 toward moving expenses, etc. (We just had a closing last week
where the seller’s lender paid the seller an additional $10,000 to sell via short sale, on a $95,000 purchase
contract!). This did not include $3,000 from HAFA.
Call us to discuss your situation if you are struggling…. There are options !
Tom Brubaker,
813-493-2913
