Benefits to a HAFA Short Sales

After a seller has jumped through all of these hoops, there should be benefits, right? There are. For example, second lenders can no longer try to force a seller to commit short sale mortgage fraud by demanding payments outside of escrow or holding the seller's first-born as collateral. Here are other HAFA benefits:

• Lenders that participate in HAFA waive the right to a deficiency judgment.
• Second lenders can receive up to 3% of the loan balance or $3,000 maximum to release the loan.
• First lenders will receive a government payment of $1,000 to approve the short sale and the investors receive up to an additional $1,000 for giving a second lender up to $3,000.
• Sellers will receive a government payment of $1,500 at close of escrow to cover relocation expenses.
• Sellers will not be required to make a seller contribution.
• Lenders must agree not to foreclose during the short sale process.

Another condition of HAFA is all parties must sign an arm's length affidavit. In other words, the seller cannot sell to a person the seller knows or to whom the seller is related. The buyer must also agree not to sell the property for a minimum of 90 days.

Contact Shawneequa Badger at (408) 469-0061 for more information on getting your Short Sale done under the HAFA Program.