Saturday, February 9, 2013

HAFA Changes Effective 2/1/2013

As a Certified Distressed Property Expert I have access to some information other Realtors do not. One of them was a great webinar about the newest changes to HAFA.

Keep in mind that these are guidelines set forth by the Treasury Department. Not every lender will follow, but newer guidelines are better than no guidelines at all.

A couple of forms have been changed which will allow for shorter time periods. Not as much back and forth to initiate a Short-Sale.

Servicers are required to respond within 30 days, previously 45 days.

If a pre-determined hardship is verified, the short-sale can progress without the hardship affidavit stalling the time frames. It is required at the end, but doesn't stall the beginning.

The treasury used to contribute up to $2000.00 for 2nd lien holder payoff. Now they will contribute up to $5000.00.

Resale on a HAFA short-sale couldn't happen for 90 days. Now, as long as the new sale price isn't more than 120% of the purchase price, the resale can happen after 30 days. Good for investors.

All servicers should have on their websites the Short-Sale Matrix...the way a short-sale is handled by their company.

The relocation incentive paid to borrowers can be used to pay tenants to vacate after a short-sale on investment property if chosen to do so. Of course must be disclosed to lender/servicer.

And, needless to say, I've received some secret e-mails and toll-free numbers to help sellers even more
 if their servicer/lender isn't cooperating!

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