Before You Put Your Chicagoland Home Into Short Sale, See If You Qualify For HAFA
In case you missed it, here are Home Affordable Foreclosure Alternatives (HAFA) February 2015 Updates
The government-sponsored program, Home Affordable Foreclosure Alternatives (HAFA), helps qualified homeowners seeking to transition to more affordable housing if they can’t afford their mortgage. They offer two options, a short sale or a Deed In Lieu (DIL) of foreclosure.
To make the transition as favorable as possible, HAFA offers the following benefits:
- Free advice from HUD-approved housing counselors and real estate agents. (Ask CDPE certified Broker, Teresa Ryan, how you can avail of HAFA if you meet the criteria.)
- A HAFA short sale completely releases the homeowner from mortgage debt after selling the property.
- HAFA has a less negative effect on credit score than foreclosure or conventional short sales.
- Visit the HAFA website (http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx) for a complete list or call 630-276-7575 to speak to a Ryan Hill Realty HUD-qualified agent.
Homeowners that may be eligible for HAFA fall into the following *criteria:
- Documented proof of financial hardship
- First mortgage was less than $729,750
- Obtained mortgage before January 1, 2009
- Have not purchased a new home within the last 12 months
- No criminal convictions of felony larceny, theft, fraud, forgery, money laundering, or tax evasion in connection with a mortgage or real estate transaction in the last.10 years.
Here is an update by HAFA in February 2015. It includes changes such as:
- Homeowners can receive relocation assistance of up to $10,000 at closing after February 1, 2015.
- Investor reimbursement increases to two dollars for every three dollars of short sales proceeds paid to a subordinate lien holder, up to a maximum of $8,000.
- Subordinate mortgage lien holders can be paid up to $12,000 of gross sales proceeds in exchange for a release of the lien and full release of borrower liability.
(Source: Certified Distressed Property Expert (CDPE))
