Short Sales, Foreclosures Tucson, Vail AZ, HAFA, HAMP, $3,000 Moving Expenses

HAFA: How to Obtain $3,000 to Short Sell My Home

This article is one in a series on Short Sales and Foreclosures. Eighteen articles are currently planned, but more will be added as needed. A complete list of articles appears at the bottom of this page.

What Is HAFA?

HAFA stands for “Home Affordability Foreclosure Alternatives”. It is a program set up by the US Department of Housing and Urban Development to help home Sellers avoid foreclosure.

HAFA is an option for Homeowners that are unable to work out an acceptable solution under the HAMP program (Home Affordability Modification Program). HAFA is also available to Homeowners that may have obtained a modification under HAMP but they are unable to keep up with the payments.

You do not have to apply for HAMP before applying for the HAFA program. In fact, you may already have a Short Sale Contract in hand and may still apply for the HAFA program.

What are the Eligibility Requirements for HAFA?

· Principal Residence: The home must be your primary residence.

· First Lien Before 2009: The primary loan on your property must have been originated prior to 2009. If you refinanced after 2009, you may not be eligible.

· Owe Less Than $729,750: If you owe more than $729,950, you are not eligible.

· Mortgage Delinquent: You must be either delinquent on your monthly mortgage payment or default it reasonably foreseeable.

· Payment/Income Ratio: Your total monthly payment must exceed 31% of your gross income. For example, you are currently earning $5,000 per month. Your monthly mortgage payment is $2,000. The percentage of Payment to Income is 40% ($2,000/$5,000) which is greater than 31%, so this Homeowner would qualify.

· Lender Members Only: Participation by lenders in this program is optional; they must have signed up prior to April 5^th, 2010 (most major lenders have).

What are the Benefits of HAFA?

HAFA is a Short Sale program that helps Homeowners sell their home and avoid foreclosure. Plus it is a much faster, more predictable way to obtain approval for a Short Sale. Here are the key benefits:

· Homes Prices are Preapproved: Lenders will pre-approve terms once the HAFA program has been approved.

· Approvals are Fast: The Lender must respond within 10 business days.

· Requires Full Release: Homeowners must be released from any liability for all loans which are secured by the property.

· $3,000 Incentive: Homeowners are provided with a $3,000 incentive for relocation assistance.

How Do I Get Started?

Your first step is to contact your Lender followed quickly by a call to a qualified, experienced Short Sale Real Estate Agent/Broker. You must sell your home through a Realtor under this program. Here are first, recommended steps:

1. Contact your Lender regarding a Mortgage Modification Program, even if you believe that you have no choice but to sell your home. You must reach that decision with your Lender.

2. Contact a Realtor qualified and experienced in Short Sales: This is critically important, as your Realtor will be negotiating the sale on your behalf, and there are too many issues specific to a Short Sale that a Realtor without experience will be lost. Information also changes often, so only Realtors experienced and actively working with Short Sales will be able to stay current.

Your next steps will be determined based on the results of your discussions with your Realtor and/or Lender.

This document is an overview of HAMP; additional material will be released over the coming weeks.

Disclaimer: The above article is, to the best of our knowledge and belief, an accurate representation of the facts. It is informational and not intended to be a source for financial or legal advice. We are not qualified to provide financial or legal assistance; however, we are licensed and experienced in the sale or purchase of Real Estate, and we will gladly provide guidance and recommendations in this area.

Rob & Catherine Hallberg, CSR, GRI, ABR, SFR, MRE

Associate Brokers, Long Realty

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HAFA: How to Obtain $3,000 to Short Sell My Home

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