Home affordable foreclosure alternative hafa program

A minimum of three sold comparables must be submitted. These must be comparable to the subject property's square footage, amenities, age and location, and must have closed within six months prior to the effective date of the disputed valuation. If the dispute is based on repairs, an estimate of repairs prepared by a licensed contractor is required.

Borrowers or Real Estate Agents may contact Liberty Bank regarding a disputed valuation at the phone numbers listed in the contact information section below. If the new value comes in lower, we will reduce the minimum net sales proceeds MNSP accordingly. If the new value comes in higher than the prior value, we will not change the MNSP.

Borrower returns Short Sale Agreement to servicer: 14 days Marketing of property: Days Borrower submits offer to servicer: Within three days of receipt of offer Servicer decision after offer submittal: 10 days Closing: 45 days after approval, or earlier when requested by borrower or required by state law Please note that timeframes will vary based on investor, MI, Second Lien holder approval.

Some of the key benefits are:. Given that the borrower, mortgage and servicer all meet the above qualifications, then the lender must consider HAFA if the borrower:. Short sales and DILs are complex transactions involving coordination and cooperation among a number of various parties.

Fortunately the HAFA program simplifies and streamlines the process. HUD approved, nonprofit housing counselors are available to answer your questions, determine your eligibility for the HAFA program and communicate with your lender to get your application started at no charge to you.

Lenders must allow the opportunity for the borrower to attempt a Short Sale or accept a Deed-in-Lieu of foreclosure before following through with a foreclosure. Borrowers are fully released from future liability for the first mortgage debt — lenders cannot ask for a cash contribution, promissory note, or deficiency judgment to complete a short sale or DIL.

Additionally, junior lien holders i. Supplemental Directive offers incentives to lenders to assist homeowners in short sales or deeds-in-lieu. Lenders are encouraged to streamline the short sale process and are offered financial incentives to carry out these foreclosure alternatives.

The Home Affordable Foreclosure Alternative program evolved to solve the massive issue with short sales processes and procedures being lengthy, confusing and somewhat unmanageable. Details of HAFA. HAFA provides financial incentives as follows:. Important HAFA documents. The good news is that most homeowners facing financial hardship are eligible.

Unfortunately, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify. If you meet one or more of the requirements below then services must consider your eligibility for HAFA within 30 calendar days:.