Making a Short Sale Game Plan Through HAFA

A lot of our business lately has come from the short sale market. Our experience has helped many homeowners avoid foreclosure through a short sale.

It’s really important, when considering a short sale in an effort to relieve yourself of the burden and financial distressed of a home that is worth less than you owe on your mortgage, to find an agent who not only understands the ins-and-outs of the short sale process, but also has the professional experience and tools to put together a short sale game plan that will help you avoid foreclosure.

HAFA (Home Affordable Foreclosure Alternatives) is a program we frequently use with our clients. HAFA is an official program of the U.S. Departments of the Treasury and Housing & Urban Development (HUD) and is designed to assist homeowners in making a smooth transition through a short sale. Choosing the right agent who understands the process by which HAFA operates is extremely important. Through HAFA, the home seller has options in which to avoid foreclosure:

The homeowner can opt for a standard short sale.
The homeowner can opt to relieve themselves of their mortgage obligation through a Deed-in-Lieu of Foreclosure. A Deed-in-Lieu allows the homeowner to voluntarily surrender the property to their lender in exchange for the lender cancelling the loan.
Here are a few benefits of a short sale via the HAFA program:

HAFA promises the seller a FULL RELEASE of their mortgage obligation on the property.
Through HAFA, the lender will work with us as the listing agent to set an approved selling price, which can shorten the process of selling the home. In most cases when HAFA is not involved, the agent will set a selling price for the property that then has to go through a potentially lengthy approval process from the lender. HAFA helps to reduce that time and the approval process.
Through HAFA, a short sale has potentially less impact on your credit once the sale is completed.
In some cases, banks may provide the seller with relocation assistance by paying the seller a relocation stipend.