Home Affordable Foreclosure Alternatives (HAFA) Guidelines and Overview Packet Distressed Property Institute, LLC 2009. The Distressed Property Institute, LLC assumes no responsibility nor guarantees the accuracy of this document. The Distressed Property Institute, LLC is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
Loan is eligible if all of the following conditions are met:
Servicers must consider HAMP eligible borrower for HAFA within 30 days of the date the borrower: Does not qualify for trial period plan consecutive payments Servicer must proactively notify the borrower in writing of Servicer allows borrower 14 days to contact them with interest in these options After this timeline servicer has no further obligation to extend the HAFA offer Servicer issues Short Sale Agreement (SSA) along with The servicer will send documents either proactively or at the request of the borrower Process & Timelines Once SSA is issued the borrower must sign and return SSA within 14 days of its effective date, along with real estate broker listing agreement and information regarding subordinate liens Within three days following the receipt of an executed purchase offer, the borrower (or listing broker) must Servicers have 10 days to accept or deny a short sale
HAFA Step-by-Step Process* Home Affordable Does not take Foreclosure effect until April 5, Alternatives 2010 (HAFA) TO BEGIN HAFA PROCESS: Guidelines and Overview Packet SERVICER/LENDER 1 2 3 4 modification by at least 2 consecutive payments deed-in-lieu WITHIN 30 DAYS eligibility for HAFA of the availability of a short sale and deed-in-lieu transaction SERVICER/ LENDER deed-in-lieu notification to Borrower WITHIN 14 DAYS OF NOTIFICATION Servicer/Lender to express interest in HAFA program 5 SERVICER/LENDER 6 7 8 TIME VARIES (SSA) and Request for Approval of a Short Sale (RASS) documents to Borrower in one of two ways: WITHIN 14 DAYS OF SSA EFFECTIVE DATE sign and return SSA with listing agreement and info on subordinate liens TIME VARIES from Purchaser WITHIN 3 DAYS OF OFFER RECEIPT RASS to Servicer/Lender within 3 business days By request of Borrower (or Listing Agent) Sent proactively by Servicer/Lender If not working with a Listing Agent, Borrower must find one in order to proceed SERVICER/ LENDER from Borrower 9 SERVICER/LENDER WITHIN 10 DAYS OF RASS RECEIPT Short Sale Request (RASS) 10 IF ACCEPTED approval process SERVICER/LENDER IF DENIED detailing reasons for denial Borrower consults Listing Agent for other foreclosure avoidance options *Does not reflect the total time to complete a short sale under HAFA guidelines Distressed Property Institute, LLC 2009. The Distressed Property Institute, LLC assumes no responsibility nor guarantees the accuracy of this document. The Distressed Property Institute, LLC is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
Incentives processing fees holder payoff or investor is reimbursed one dollar capped at Distressed Property Institute, LLC 2009. The Distressed Property Institute, LLC assumes no responsibility nor guarantees the accuracy of this document. The Distressed Property Institute, LLC is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
It is a requirement that the property be listed with a licensed real estate professional
Causes for Termination faith in listing, marketing and closing the sale condition or value would affect the title (i.e. divorce) Distressed Property Institute, LLC 2009. The Distressed Property Institute, LLC assumes no responsibility nor guarantees the accuracy of this document. The Distressed Property Institute, LLC is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.