New Rules for Mortgage Modifications and Short Sales
Posted By Chris Forrest on Apr 22, 2010 10:18am PDT
The Obama administration's new Home Affordable Foreclosure Alternatives (HAFA) program provides new options for struggling homeowners. The HAFA program took effect on April 5, 2010, and is currently scheduled to end on December 31, 2012. This new program applies to all lenders and servicers participating in the HAMP program. To be eligible for HAFA, homeowners must first apply for a loan modification through the Home Affordable Modification Program, or HAMP. Homeowners who do not qualify for a loan modification or miss payments during the initial loan modification period qualify for HAFA.
The Forrest Law Firm handles mortgage modifications and negotiates alternatives to foreclosure. For a free telephone consultation with a lawyer about your options under the new HAFA program, call The Forrest Law Firm today at (800) 915-3923.
SHORT SALES:
The HAFA guidelines streamline the short sale process and provide incentives for lenders to complete short sales. Some of the major changes are as follows: (1) Homeowners can now receive pre-approved short sale terms from their lenders before listing the property for a short sale; (2) Lenders and servicers must respond to a short sale offer within 10 business days of receiving a short sale offer package; (3) If the lender or servicer accepts the short sale, they are required to release the homeowner from any further financial obligation of the loan, and (4) Homeowners will receive $1500 toward their relocation and moving expenses. These are major changes that will benefit many homeowners.
DEEDS-IN-LIEU OF FORECLOSURE: The HAFA guidelines also make several changes to the deed-in-lieu of foreclosure (DIL) process. Some of these changes are: (1) Lenders or servicer who agree to accept a DIL now must agree to a full release of the loan debt and waive all claims against the borrower; (2) Lenders and servicers may consider a DIL even if the property has not been previously listed for short sale; and (3) Homeowners will receive $1500 toward their relocation and moving expenses.
If you have been considering a short sale, deed-in-lieu of foreclosure or loan modification, these new rules may benefit you. For a free telephone consultation with a lawyer about your options under the new HAFA program, call The Forrest Law Firm today at (800) 915-3923.