HAFA (Home Affordable Foreclosure Alternative) was instituted to ease the settlement of Short Sale transactions between lenders and underwater Home owners. The beauty of the HAFA Short Sale is that it offers the home owners a fresh start since they can ditch their underwater home and literally the next day buy a home that has equity. But not every will qualify for a HAFA Short Sale since there are restrictions associated with the program.
The following are the HAFA guidelines which were revised in 2013 to cut and drop the damage to the homeowners credit history.
Loan Balance: HAFA guidelines only apply to the 1st liens with the balance NOT to exceed $729,750 for Single Family Homes.
Property Type: There is no restrictions on the Occupancy and even your Investor properties do qualify.
Origination Date: Your mortgage note should have been originated on or before Jan 1, 2000.
Short Sales Attempted: Most agent neglect to investigate this, but if you have attempted a Short Sale in the last 12 months but did NOT accept the offer from your lender, then you might NOT qualify for a HAFA Short Sale.
Contact Us to see if you qualify for a HAFA Short Sale since it’s an ideal way to unload your underwater property.