Are there Financial Incentives for HAFA?
HAFA is the only program that gives you cash for avoiding foreclosure through a short sale or deed-in-lieu of foreclosure. If you complete a short sale or deed-in-lieu, then up to $3,000 in Borrower Relocation Assistance may be available to aid in your transition. The biggest gain of HAFA, however, is that it helps you get your life back if you feel like there are no other solutions when faced with foreclosure.
What’s in it for the Homeowner?
Homeowners qualify for $3,000 in Borrower Relocation Assistance
• Will be deducted from gross sale proceeds at closing
• May classify as taxable income in some cases
Why Would my Lender Participate in HAFA?
Lenders and servicers receive $1,500 in administration and processing fees for each successful short sale transaction under HAFA guidelines
• Servicer may not charge borrower any processing fees and MUST pay all out-ofpocket expenses
If I Have More Than One Lien Holder, Why Would They Release My Debt?
Under HAFA, subordinate lien holders receive up to $6,000 to release liens
What Motivates Investors to Buy a Short Sale?
Investors are given $2,000 for subordinate lien holder payoff as well as a great deal on a properly maintained property
• For every three dollars spent to release liens (up to $6,000) investor is reimbursed one dollar (up to $2,000)
Source: Making Home Affordable. Supplemental Directive 09-09 Revised (2010):
https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf
Categories: Virginia Short Sales, Foreclosures, Certified Distressed Property Experts in Virginia, Housing and the Economy, Bankruptcy, Virginia Pre-Foreclosure, Housing Market
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