I am a Certified HAFA Specialist!
If you can’t afford your mortgage payment and it’s time for you to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a short sale or a Deed-in-Lieu (DIL) of foreclosure. In a short sale, the mortgage company lest you give the title back, transferring ownership to them.
In either cases, HAFA offers benefits that makes the transition as favorable as possible:
You can get free advice from HUD-approved housing counselors and licensed real estate professionals.
Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price.
HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
When you close, HAFA provides $3,000 in relocation assistance and most mortgage companies will give $10,000 for moving expenses.
Contact me for:
- Program Availability
- Steps to Apply for HAFA
- For more information
I have been successful in closing many short sale transactions at absolutely no cost to the sellers. If you are having difficulties making your house payments, a short sale listing may also extend the time period that the bank will allow for you to stay in the home.
Short Sale Law Effective Immediately in California:
Senate Bill 458(Corbett) expanding anti-deficiency protection to all 1-4 residential mortgages or deeds of trust where the beneficiary consents to a short sale, whether a first deed of trust or a junior deed of trust.
This new law also limits the short sale anti-deficiency protections by excluding sales here the trustor is a limited partnership or LLC. Existing short sale law enacted in 2010 already excluded corporations.
Of particular importance to title and escrow companies, the bill prohibits a note holder from requiring the borrower to pay additional compensation, aside from sale “proceeds”, in exchange for the note holder agreeing to the short sale.
I have had success in obtaining loan modifications for my clients. If you have tried and failed to negotiate with the bank on you own…LET’S TRY AGAIN!
Pre-Foreclosure Period– It can take up to four months for your lender to foreclose after you stop making your mortgage payments.
Day 1- A lender must contact the borrower to asses the borrower’s financial situation. The lender must inform the borrower of the right to meet with the lender within 14 days.
Day 31- A lender may file a notice of default 30 days after contacting the borrower. The default must be filed, and mailed to the borrower within 10 business days.
Day 121- 3 months after the notice of default, the lender may record a notice of trustee’s sale stating all information about the upcoming sale.
Day 145- Up to 5 days before the trustee’s sale the borrower may reinstate the loan by paying the missed payments plus allowable costs.
Day 152- Trustee’s sales can take place 20 days after the posting of notice of sale. At the trustee’s sale the property is sold to the highest bidder.