The HAFA program, or Home Affordable Foreclosure Alternatives program is a relatively new government program. Under this program homeowners who do not qualify for a HAMP loan modification, or do not wish to get a loan modification may short sale their property given specific qualifications are met. Note that the same criteria for qualifying for a traditional short sale must exist, namely, a financial hardship must exist that prevents the homeowner from making mortgage payments. The specific HAFA requirements are:
- You must live in the property as your primary residence
- The amount owed does not exceed $729,750
- The qualifying loan was obtained on or before January 1st, 2009
- Your current loan payment (Principle, Interest, Taxes and Insurance as well as HOA fees if applicable), must exceed 31% of your gross income
- As above, a financial hardship exists
The process of qualifying for this type of Short Sale is streamlined when compared to a traditional short sale. Approvals can be had in as little as 10 days from the date that a complete package is sent to the lender. Under this program, the homeowner is eligible for $3,000 in relocation assistance which can be critical during this challenging time in their lives.
For more information or to find out if you qualify for the HAFA program, contact us immediately.
