Seller Incentive Programs
Some mortgage lenders are offering Seller Incentives to complete a short sale. These financial incentives can range anywhere from $1500 to as much as $40,000. The reason the lenders are making these offerings is to encourage homeowners to be proactive and complete a short sale instead of allowing the home to foreclosure. Typically lenders loose less money through a short sale, and the seller incentives raise homeowner awareness of the short sale process and potential. Not every lender is participating, and not every homeowner will qualify. We have had great success in getting cash back for many of our clients, but whether or not you qualify depends on several factors. The probability of you qualifying for a seller incentive can be easily ascertained in our initial consultation/evaluation.
Home Affordable Foreclosure Alternatives (HAFA)
What is HAFA?
The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative led by the US Treasury Department and offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale. The federal government specifies many of the aspects of the program and is subject to lender/investor participation. Under HAFA, after a short sale is successfully completed, a homeowner is cleared of all remaining debt and obligations on their first lien mortgage to their mortgage servicer and is eligible for $3,000 to help with moving expenses.
Do I Qualify for HAFA?
A mortgage loan meets the basic eligibility criteria for HAFA if all of the following are true statements:
· The loan was for the principal residence of the borrower.
· The loan was a first lien mortgage originated on or before January 1, 2009.
· The mortgage is delinquent, or default is reasonably foreseeable.
· The unpaid principal balance on the loan is no more than $729,750 for a single-family property.
· The total monthly payment on the mortgage (including principal, interest, property taxes, hazard and flood insurance, condominium association fees, homeowner’s association fees, etc) is more than 31% of the gross income of all borrowers on that mortgage.
·The all loan modification options have been exhausted,
Use of the term “borrower”means all borrowers on the mortgage in question.
In addition to the eligibility requirements, the investor considerations are also taken into account to determine eligibility to pursue a HAFA Short Sale:
· The first mortgage loan must be owned by an investor participating in the HAFA program.
· Subordinate mortgage/lien holders must agree to release the liens
Loan servicers retain the right to accept or deny a HAFA application based on external factors, such as the severity of the loss involved, local market
conditions, the timing of pending foreclosure actions, and borrower motivation and cooperation.