HAFA (Home Affordable Foreclosure Alternative) was introduced to help home owners who owe more money than than their home’s value.
The benefit of a HAFA Short Sale is that it offers the home owners a fresh start since they can ditch their bad loan and literally 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.
1) Loan Balance: HAFA guidelines only apply to the 1st liens with the balance NOT to exceed $729,750 for Single Family Homes. This does not help the high-end home prices in California which are above this limit, but with the median California prices at less than 500,000 the program has some merits.
2) Property 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. However, if you have refinanced your mortgage then you will not qualify for a HAFA Short Sale.
4) Short Sales Attempts: You only get one shot every 12 month at a HAFA Short Sale. 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.