HAFA.. Will It Help Knoxville Home Owners Facing Foreclosure??
April 28th, 2010 categories: HARP, Knoxville Short Sales, Market Trends, Mortgage Guidelines, Sellers
If You Are A Knoxville Homeowner Facing Foreclosure…HAFA May Help You.
HAFA was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways:
- Compliments HAMP by providing viable alternatives for borrowers who are HAMP-eligible
- Uses standard processes, documents and timeframes
- Provides financial incentives to borrowers, servicers and investors
- Requires that borrowers be fully released from future liability for the debt
- 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 agreement1
HAFA provides financial incentives as follows:
- Homeowners qualify for $3,000 (updated March 26, 2010; was previously $1,500) in Borrower Relocation Assistance after a short sale or deed-in-lieu has been completed (may classify as taxable income in some cases2)
- Financial incentives for servicers participating in the program include up to $1,500 (updated March 26, 2010; was previously $1,000) servicing bonus upon completion of a Knoxville short sale or Knoxville deed-in-lieu
- Financial incentives for investors include up to $2,000 (updated March 26, 2010; was previously $1,000) for those who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. This reimbursement will be earned on a one-for-three matching basis3
- Lenders pay all servicing fees — homeowners have no out-of-pocket expenses4
There are two additional documents which provide detailed technical information on data related to HAFA and the HAFA reporting procedures for servicers:
- HAFA Data Elements (Exhibit D) is a series of tables detailing specific reporting procedure data for servicers. It is available at the end of Supplemental Directive 09-09 Revised. This is a document for servicers
- The HAFA Data Dictionary is a spreadsheet in Excel format coordinating with HAFA Data Elements (Exhibit D) that catalogues all of the data elements and associated metadata for the program, including the names, definitions, allowable values, and data types. It also defines the functional areas where the data elements are being used.5 This is a document for servicers
If you are a Knoxville Homeowner facing foreclosure and need help call me at 865-675-8326 or email me at [email protected] Here is a short video that does a really nice job explaining the new program. Check it Out
