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Some of the pain of short sales may start to wain. The potential salve comes from the Home Affordable Foreclosure Alternatives (HAFA) program. It is designed to help homowners who couldn’ keep their home under the Home Affordable Modification Program (HAMP)
If the program works as planned, listing, selling and closing will get streamlined and documents will get streamlined for all parties, making short sales less excruciating than they are now for all parties. This new program runs until 12/31/2012.
HAFA eligibility is as follows:
- Property must be borrower’s principal residence
- It must be a first lien mortgage originated prior to 1/1/2009
- The mortgage is delinquent or delinquency is reasonabley foreseable
- The unpaid principal balance is no more thatn $729,750 for single family residences. Higher limits for duplexes or multi family properties.
- Borrower’s total monthly mortgage payment exceeds 31 percent of their gross income
- After notification of potential HAFA eligibility, borrower have 14 days to request HAFA consideration.