Many of my posts have mentioned and discussed short-sales, that most inappropriately named process of selling a home that is in trouble but not yet foreclosed upon. Misnamed because short sales generally take anywhere from about 90 days on the quick side to over a year for longish transactions. The process is rife with pitfalls: competitive offers, appraisal problems, lender mistakes, lender inaccuracies, and outright lender lies!
Adding to it’s list of available homeowner assistance programs, the Obama administration has unveiled it’s new Home Affordable Foreclosure Alternative Program (HAFA is a smaller mouthful!). HAFA provides a road map and tools to a short-sale, for borrowers who are unable to satisfactorily work out there mortgage problems and are facing foreclosure. The program should streamline the complicated and unsavory process and will hopefully lead to fewer foreclosures.
Incentives for lenders to participate is one of the ways that HAFA should be able to get more buy-in. Borrowers too get a little cash: $1500 to defray moving costs – better than having the door hit you in the back as you move out! Standardized forms, procedures and timelines and preapproved short-sale terms will provide a higher level of confidence to potential buyers who, up until now had no guarantee that their accepted offer would ever actually end up in home ownership!
There are restrictions and limitations to which types of loans qualify, so if you are considering short-selling your home be sure to have your Chico area Realtor help you determine if you qualify.
Adding to it’s list of available homeowner assistance programs, the Obama administration has unveiled it’s new Home Affordable Foreclosure Alternative Program (HAFA is a smaller mouthful!). HAFA provides a road map and tools to a short-sale, for borrowers who are unable to satisfactorily work out there mortgage problems and are facing foreclosure. The program should streamline the complicated and unsavory process and will hopefully lead to fewer foreclosures.
Incentives for lenders to participate is one of the ways that HAFA should be able to get more buy-in. Borrowers too get a little cash: $1500 to defray moving costs – better than having the door hit you in the back as you move out! Standardized forms, procedures and timelines and preapproved short-sale terms will provide a higher level of confidence to potential buyers who, up until now had no guarantee that their accepted offer would ever actually end up in home ownership!
There are restrictions and limitations to which types of loans qualify, so if you are considering short-selling your home be sure to have your Chico area Realtor help you determine if you qualify.
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