Today marks the first day of HAFA (Home Affordable Foreclosure Alternatives) which is the new program that is supposed to make short sales easier, faster, smoother, and may even PAY you to cooperate with your lender, but in reviewing some of the guidelines, I noticed a biggie that isn’t being talked about… YOU SHOULD STILL BE IN THE HOME! If you move out into another house it might hurt your chances! Here’s some basic guidelines:
- Principal residence. The property may be vacant up to 90 days before the date of the Short Sale Agreement (SAA), Alternative Request for Approval of Short Sale, or DIL but only if the borrower documents they were required to relocate at least 100 miles from their home for purposes of employment and they have not purchased another property in the 90 day period.
- First lien originated before 2009
- Mortgage delinquent or default is reasonably foreseeable
- Unpaid principal balance no more than $729,750 (higher limits for two- to four-unit dwellings)
- Borrower’s total monthly payment exceeds 31% of gross income
If you are considering a short sale on your home, make sure you talk to a Realtor that is well versed and understands the ins and outs of doing a short sale, don’t be afraid to ask them! HAFA just went into effect today, so they won’t know all of the kinks in the HAFA program, but they should have a thorough understanding of the short sale process and what it takes to get them closed!
Good Luck!
p.s. If you’re in the Central Florida area, I would love to offer a free consultation on your situation. And no matter WHERE you are, you can get some basice short sale tips at www.BeforeYouShortSale.com
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