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Ha Fa Updates

The Home Affordable Foreclosure Alternatives (HAFA) program provides assistance to homeowners facing foreclosure through short sales or deeds-in-lieu of foreclosure. The document announces updates to HAFA, including extending the program deadline to December 31, 2013, removing occupancy requirements, increasing relocation incentives and payments to second lienholders, and standardizing credit reporting following short sales or foreclosures.

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Steve Mun Group
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41 views1 page

Ha Fa Updates

The Home Affordable Foreclosure Alternatives (HAFA) program provides assistance to homeowners facing foreclosure through short sales or deeds-in-lieu of foreclosure. The document announces updates to HAFA, including extending the program deadline to December 31, 2013, removing occupancy requirements, increasing relocation incentives and payments to second lienholders, and standardizing credit reporting following short sales or foreclosures.

Uploaded by

Steve Mun Group
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Affordable Foreclosures Alternatives (HAFA) Updates and Extension March 12, 2012

The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales or deeds-in-lieu of foreclosure.


Deadline Extension Occupancy Requirements Relocation Assistance Mortgage Payments and Debt/Income Ratio Secondary Lienholders

As of March 2009
Deadline was Dec. 31, 2012 Homeowners must have lived in the property within the previous 12 months. $3,000 granted to homeowners after completion of short sale or deed-in-lieu. Mortgage payments on loans may not exceed 31% of the homeowners gross monthly income. Secondary Lienholders my receive a maximum of $6,000

Change as of March 9, 2012


Deadline is Dec. 31, 2013 There are now no occupancy requirements. $3,000 relocation incentives are limited to owner or tenant occupied properties at the time of short sale. Mortgage payments may now be allowed to exceed 31% of gross monthly income if it keeps the homeowner current on their mortgage. Secondary Lienholders may now receive up a maximum of $8,500. Credit Bureau Reporting will now be "Account Status Code = 13 (Paid or closed account/zero balance) or 65 (Account paid in full/a foreclosure was started) as applicable."

Credit Bureau Reporting

No official credit bureau coding.

New policies effective: March 9, 2012 Retroactivity: Servicers not required to, but may reevaluate borrowers formerly ineligible. Source: United States Treasury Department Expanding our Efforts to Help More Homeowners and Strengthen Hard-hit Communities.

2010 The Distressed Property Institute, LLC All Rights Reserved

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