Kim Novak's Utah Real Estate Blog: Simplifying Short Sales: HAFA Home Affordable Foreclosure Alternatives

News, Trends & Discussions About The Real Estate Market in Northern Utah

Simplifying Short Sales: HAFA Home Affordable Foreclosure Alternatives

Breaking News 11/30/09 The U.S. Treasury announces a plan to simplify and expedite the Short Sale approval process called HAFA Home Affordable Foreclosure Alternatives Program.

  • Complements HAMP by providing viable alternatives for borrowers who are HAMP-eligible.

  • Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis.

  • Allows the borrower to receive pre-approved short sale terms prior to the property listing.

  • Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement.

  • Requires that borrowers be fully released from future liability for the debt.

  • Uses standard processes, documents and timeframes.

  • Provides financial incentives to borrowers, servicers and investors.

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    Kim Novak is a Broker Associate with RE/MAX Masters in Salt Lake City and Layton, Utah. She holds a BSBA with an emphasis in Sales & Marketing and has achieved the designations of ABR: Accredited Buyer Representative, CDPE: Certified Distressed Property Expert, CRS: Certified Residential Specialist, CSP: Certified New Home Sales Professional, GRI: Graduate of the Realtor® Institute, SRES: Seniors Real Estate Specialist and ePRO: Internet Professional. Licensed in 1995, Kim has closed over 500 sales during her full time real estate career. 

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    5 comments • Kim Novak • December 01 2009 11:19PM

    Comments

    I read that today....hope it will get those Short Sales moving.  They are really a mess to handle now.

    Posted by Sandra Scott, REALTOR of Choice! Payson, Pine & Strawberry, AZ (Four Seasons Realty) 9 months ago

    Hi Kim,

    Thank you for an informative and helpful article.

    John Pusa

    Posted by JOHN PUSA 01044712 (Citiwide Realty) 9 months ago
    Remember this though: a) this program is optional for most loan types and lenders b) the lender must agree to release the lien and liability (liability is the key) and many lenders (especially BofA) are not wanting to release liability so easily. If you want short sales to be easier, don't expect it to come from the banks or the government, you need to become better. We'll see how this affects things come April 2010. Trent ShortSaleGeni.us
    Posted by Trent Chapman 9 months ago
    I don't need them to be easier (nothing that we do now is "easy") and I know that we're a long way from "probable", but it's reassuring to know that at least we're moving toward "possible". :)
    Posted by Kim Novak 9 months ago
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