Some Great HAFA Changes Start June 1st

The Home Affordable Foreclosure Alternative (HAFA) program is making some additional changes effective June first of this year. The HAFA program was designed to help homeowners avoid foreclosure. Anything that can be done to help more people avoid foreclosure ~ you know I'm all for it. In the Santa Clarita Valley Real Estate market we have a lot of underwater homeowners. Many would prefer to stay in their homes, but if they just can't, the HAFA program does help them with relocation costs and more.

The HAFA updates will certainly allow more underwater homeowners to get assistance. Great news is the deadline in submitting for the eligibility will be extended to 12/31/13.

Other changes from the March update to HAFA are:


1) Removal of Owner Occupancy Requirement. The seller used to have to live there during the prior 12 months. Now, no such requirement, but the homeowner can't have purchased another property in the last 12 months.

2) The $3000 relocation incentive will be limited to properties that are occupied by the homeowner or tenant during the Short-Sale.

3) Mortgage payments will be allowed to exceed 31% of the homeowners gross income. This allows the homeowner to stay current on their mortgage, if they can afford it  ~ reducing the ding on their credit!

4) Nice for listing agents negotiating with a junior lien holder! Now the lien holder can get a maximum of $8500 instead of the $6000 allowed before.

5) The Credit Bureau Reporting will be changing the way it is noted too. Either 'Paid or Closed Account/Zero Balance', maybe 'Account Paid In Full ~ A Foreclosure Was Started'.  Obviously dependent upon the situation.

These HAFA updates are great for those homeowners that want to take the least ding on their credit, by staying current on their mortgage! Allowing some tenant occupied properties to possibly get the 3k assistance. And, the 2nd loan holder getting more money makes them happier and more likely to be cooperative with a SS.

Santa Clarita Valley and it's surrounding communities are beautiful. We have tons of SS's now, many REO's too....but it's still one of the best California neighborhoods to live in!