In 2010, the U.S. government created that the Home Affordable Foreclosure Alternatives (HAFA) program to prevent foreclosures and also streamline the brief sale process. Previously, short sales often resulted in foreclosure and sometimes took weeks to finish, according to Fox Business. With brand new short sale regulations in place, the process might be shortened and made more effective in the long term. HAFA will last until December 2012 and went into effect. Sellers who do not qualify for a HAFA short sale can still attempt a traditional short sale.
Eligibility
All of HAFA short-sale applicants must be eligible for the U.S. Home Affordable Modification Program. The listing of criteria for this program is rather extensive. The home must be possessed and occupied, and the loan-origination date must be on or before Jan. 1, 2009. There are also outstanding balance maximums that vary by property size. Houses, as an instance, must possess according to JPS Law Offices. Might consider finding a conventional short-sale agent.
Property Worth
Cost limits have been set by the federal government for short sales, which remove a lot of the doubt surrounding short sales. Property value is determined by a USPAP-approved (Uniform Standards Of Professional Appraisal Practice) home evaluation or at least a single broker price opinion over 120 days of the brief sale arrangement, according to the U.S. Treasury.
Sale Duration Regulations
HAFA short sales require a minimum of 90 days and a maximum of one year to market the property. The selling process has to be overseen by a certified realtor. A pending property foreclosure on the property has to be set on hold before the brief sale process is complete. Sellers have the option to include a deed-in-lieu in the brief sale contract, which states that if the home does not sell within a year, the property will likely be turned into the loan servicer.
