Posts Tagged ‘Approved’

HAFA is a government-subsidized Home Affordable Foreclosure Alternatives program for distressed homeowners to sell their homes to avoid foreclosure, even if the sales price is not enough to pay off their existing mortgage loans. Under HAFA, a participating lender will pre-approve the terms of a short sale and give the borrower at least 4 months to market and sell the property using a licensed real estate professional.

The eligibility requirements for a HAFA short sale include the following:

• Property must be borrower’s principal residence;

• Loan must be a first trust deed originated before 2009;

• Loan must be delinquent or default must be reasonably foreseeable;

• Current unpaid principal balance must be $729,750 or less for single-family home (or higher amounts for 2-to-4 units); and

• Borrower must be eligible for, but unable to complete, a loan modification under the Home Affordable Modification Program (HAMP).

The government incentives under HAFA are as follows:

• $1,500 to borrower for relocation expenses;

• $1,000 to servicer for each successful short sale; and
$1 to investor for every $2 paid to extinguish junior liens, up to $1,000 maximum.

Dates Effective:  April 5, 2010 to Dec. 31, 2012.

For more information and to see if you can qualify for this program, fill out the Confidential Property Analysis form on this site or give us a call or email and we can help.

-J

I recently got this question from a client of mine that was in this very situation.  House upside down with a loan to value difference close to $100k and wanted to avoid a foreclosure.  We got her house listed, and got a full priced buyer.  The bank approved the short sale (and a check to the seller at close as well BTW) and everything was set to go.  Then the question came up.  How will this affect my SSI payment?

No one I talked to knew this answer so I got on the phone with the good old US government and the nice people at the Social Security Department and guess what?  It turns out that a short sale has no affect on regular social security payment, HOWEVER, IT DOES AFFECT SSI.  As a matter of fact, in the year that the 1099-c is issued for the forgiven debt (even though there is no ACTUAL income and it is exempt from federal tax consequences on an owner occupied home), it will count against them for SSI eligibility in regards to the financial limits required to qualify.  What does that mean?

Well it means no short sale for this client and welcome to one more foreclosure in America.

I can’t make the payments on a second home and it’s not worth what I paid. I have equity in my primary home and I make a good salary, but have lots of other debts. Is a short sale possible or do I need to be totally out of equity and money?
I must add that my outgo is much more than my income at this point. Even though I have equity and a good salary, I feel broke.

we made an offer on a short sale home. the bank has not approved the sale. we have not started escrow yet. but the escrow company already deposit our check. is this even legal? how do I get my check back?

We been at this short sale since Feb. The short sale negioater approved everything and submitted his approval to be signed off by his manager. That was 3 weeks ago and we are still waiting.

What if your economic situation change and you decided to short sale a house after a loan modification has been approved. Is it still possible?