The HAFA program takes effect on April 5th, 2010. The program is for struggling home owners to make it easier for them to sell their homes as a short sale, rather than falling into foreclosure. The HAFA program:

• Property must be their principal residence and bought before January 1st, 2009.
• Current Unpaid mortgage balance is less than $729,750
• Homeowner must have a genuine hardship-must be documented by Tax Returns, bank statements, W2s etc.
• Mortgage is delinquent or default is reasonabley foreseeable
• Lender waives rights to deficiency judgement
• Subordinate Lien Holder Payoff – capped at $3000
• Lender to provide $1500 to borrower for relocation costs
• It is a requirement that home be listed with a licensed real estate agent
• Lender pays real estate commission as per Listing agreement including owner’s closing costs-No costs to the home owner

The HAFA program was design to streamline the short sale process to create a smoother transaction. Now, people are starting to notice that there seems to be a problem with short sales and foreclosures and am finally doing something about it. So far the program is moving us in the right direction.