Will a Short Sale help me?
In 2009 the Home Affordable Foreclosure Alternative Program (HAFA) was introduced to the public by the Obama Administration. HAFA was designed to help homeowners who are unable to keep their home due to financial crisis. The HAFA Program offers assistance and incentive for homeowners to seek a short sale as an alternative to just walking away. There have been recent changes to the HAFA Program which will improve the short sale process and will ultimately allow more homeowners to have a fresh financial start.
One major change to the HAFA Program will require the loan servicers (or Mortgage Company) to respond to short sale offers within 30days with acceptable price and terms. This change will greatly improve the time it takes to get short sale approval. If you currently own a home which is underwater, but you are not sure if you qualify for a short sale, here are the six questions HAFA uses to determine eligibility:
- Is the first loan owned or guaranteed by Fannie Mae or Freddie Mac? If you are unsure, you can visit www.FannieMae.com/loanlookup or http://ww3.freddiemac.com/corporate/ to verify.
- Is the property your primary residence and do you still reside there now or within the last 90 days?
- Is the mortgage a “first lien” mortgage?
- Is the mortgage delinquent or in default (missed payments)?
- Is the current unpaid principle balance of the loan, equal to or less than $729,750?
- Does your total monthly mortgage payment exceed 31% of your gross monthly income?
If you answered yes to all of the questions, with exception to question number one, then you may be eligible for the Home Affordable Foreclosure Alternative Program – and you could further be eligible to receive up to $3,000.00 CASH relocation assistance. If you are wondering, will a short sale help me, please contact me today to learn more. If you are considering just walking away from your home, you need to know you are not alone – it’s ok to ask for help.
Luisa Ramirez, RE/MAX Professionals