HAFA Short Sales: A Much Needed “Fresh Start” Program For Troubled Borrowers
by Ray Mathoda, Founder and CEO AssetPlanUSA
A recently implemented foreclosure alternatives program created by federal officials is reflective of what many real estate professionals know already: for those experiencing significant loss of household income, financial stability and a job are more important than short term retention of home ownership.
The Home Affordable Foreclosure Alternatives – or HAFA program – designed by the Treasury Department and implemented by Fannie Mae, Freddie Mac, and loan servicers representing more than 90 percent of all loans outstanding offers short sale and deed-in-lieu opportunities to millions of distressed homeowners who are struggling to make their mortgage payments due to labor market issues.
Short sales are the primary foreclosure alternative offered under the HAFA program. With its mandatory implementation in the non-GSE market starting April 5, 2010 and its adoption by both Fannie Mae and Freddie Mac on August 1st, 2010, HAFA becomes the only standardized nationwide short sale program offered by multiple loan servicers with mandated debt forgiveness by all lien holders and $3000 in relocation support to help families move to affordable housing and regain their financial footing.
Until now, debt forgiveness for qualifying families has been a critical missing ingredient in the short sale industry – affecting homeowners as well as the real estate professionals supporting them during their time of need. Loan servicers – who represent the interests of loan investors (not consumers) – have been reluctant to promise debt forgiveness when approving short sale transactions due to fear of potential lawsuits from loan investors aiming to maximize their collections on bad debt.
Now, the HAFA program has set a clear and much needed market standard – for qualifying families with unaffordable mortgages on their primary residence – debt forgiveness should be the norm. Finally, we can offer distressed borrowers a respectful exit and fresh start outside the foreclosure process.
This information is presented with the permission of AssetPlanUSA. It is not an endorsement for ShortSaleNurse. com or http://www.HAFA.US. Because there is a large number of Realtors that visit this blog, it is important that they also see what is taking place with HAFA. Get ready for an announcement shortly that the Arizona Association of Realtors is also going to endorse AssetPlanUSA HAFA training. Right now this is just a rumor from a fellow Realtor, but they are generally right on leading edge of HAFA news. HAFA makes sence and everyone knows it!
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