Despite the recovery news on the housing, 1 out of 4 homes are still under water which means the home owners owe MORE money than their house is worth in today’s market. So, if you have concluded that Short Sale is a better alternative to Foreclosure or Bankruptcy then you owe it to yourself to explore the credit implication of your Short Sale transaction.
The good news is that there is light at the end of your Short Sale tunnel and there are lenders who are lending ONE day after your Short Sale has concluded! Let me explain how. Recent changes to the HAFA (Home Affordable Foreclosure Alternative) Short Sale guidelines in 2013 even require the lender to report your loan as “Paid or Closed Account/Zero Balance“. Some bank could also report the loan as “Account paid in full/a foreclosure was started“.
But how do you know if you qualify for a HAFA Short Sale? Well, here are the qualifications:
1) Loan Balance: HAFA guidelines only apply to the 1st liens with the balance NOT to exceed $729,750 for Single Family Homes.
2) Occupancy Type: There is no restrictions on the Occupancy and even your Investor properties do qualify.
3) Origination Date: Your mortgage note should have been originated on or before Jan 1, 2000.
4) Short Sale Counter: 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.