explore ALL your options that are available from your lender side.
But if you concluded that a HAFA Short Sale is your best option then here are the revised guidelines:
1. Better Credit Rating: It will show “paid or closed account/zero balance” or“account paid in full/a foreclosure was started”. This is a huge improvement since the credit agencies will not be able to use your Short Sale as an excuse to ding your credit score.
2. Homeowner does not have to go behind on payments to qualify.
When it comes to this requirements, some lenders still don’t play ball! In fact, IndyMac is such a lender where they are forcing the borrowers/owners to miss at least ONE monthly payment BEFORE Indymac would take their application seriously.
3. The property no longer has to be “owner occupied”. Investment properties can qualify. This is huge since the HAFA Short Sales were only available to Home Owners and not investors.
4. New Income Guidelines: Mortgage payments can exceed 31% of the gross monthly income of the borrower. This requirement was forcing some home owners not to qualify for a HAFA Short Sale.
5. Junior liens (2nds, 3rds, etc) can receive up to $8,500 as opposed to the previous limit of $6,000. This new change is helpful since it motivates the Junior Lien holders to cooperate with a HAFA Short Sale since they now NET more money.
But this all start with a Home Value Request to find out if your home is still under water.