Will the Government’s New HAFA Short Sale Work For You?

Due to the overwhelming number of homeowners out in need of short sales, and the success rate of said short sales being extremely low, the government has stepped in to attempt to help out. The new “Home Affordable Foreclosure Alternative” program has been created in order to give mortgage companies an incentive to close these deals. But is a HAFA short sale right for you? Answer this little questionnaire, and we’ll find out.

  1. During the short sale process (which can take several months) are you able to make mortgage payments at a minimum rate of 31% of your gross (before tax) income?
  2. Are you currently living at the property?
  3. Do you have a second mortgage that is willing to accept only 3% of the balance of that loan as payment in full?
  4. Are you willing and able to keep paying utilities, assessments, association dues, and interior and exterior maintenance costs?
  5. Is your property in good condition, or are you willing to bring it up to a good condition (and keep it there)?
  6. Are you willing to take the chance that the short sale may be denied, in which case you will be forced to accept a deed in lieu of foreclosure? (turning the house over to the bank – yikes!)
  7. Will you agree to let the bank decide how much your house is worth, instead of you deciding on a value with your REALTOR®?

If you answered no to one or more of these questions (there are a few more stipulations, by the way) then you will be denied for a HAFA short sale. The good news is that you can still do a short sale the old fashioned way. And the better news is that we can take all of the stress out of it by doing it for you. You won’t have to make any repairs to your house, and you will never have to give us (or anyone involved) any money. Give Emily a call at (269) 685-5921 today and find out what we can do for you!

Joel

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