The government assisted short sale program will soon be over with a deadline set for December 14, 2012 for Home Affordable Foreclosure Alternatives or HAFA. As a background, short sale is one of the alternatives a homeowner has in terms of mortgage problems. Requiring consultation and consent from the lending company, the homeowner can put the house in the market for a good price. A short sale is usually advised when the mortgage that is still attached to the house is now bigger than the actual market value of the home.
With the influx of mortgage problems and the hopes of veering away from foreclosure, Fannie Mae and Freddie Mac put together the HAFA short sale program. Federal National Mortgage Association
or “Fannie Mae” and the Federal National Mortgage Association or “Freddie Mac” came up with the program to offer homeowners a shot in the arm to get back up on their feet. It includes the assistance to make the sale as easy and amicable transition.
Under the HAFA program of Fannie Mae and Freddie Mac, the homeowner can make use of real estate experts and professionals to gather excellent pieces of advice for the transfer. One of the benefits of the short sale program is the assurance that the deficiency in the sale of the house is written off by the lender. This will release the homeowner from the responsibility of putting up the amount for the shortage.
Another benefit of the program is the fact that your lending provider will be on the table with you to come up with the most acceptable selling value for the property. This is important because with their help, the homeowner would not have to pull random numbers from the air to determine a selling price. This also is a great heads up for the lender giving them an idea how much the deficiency in the values would be from the mortgage amount to the selling price.
One of the most critical aspects of the HAFA short sale program is the softer effect on your credit score as against foreclosure or traditional short sale. This is of great value and a big help for those that puts a premium to their credit score. This is a great attitude towards your credit score as it could be very helpful down the road.
The good thing about the expiration of the Fannie Mae and Freddie Mac HAFA short sale program is the fact that fully executed agreements for short sale that is received and uploaded into Equator before on or before the 31st of December 2012 will still be accepted. Although files that already has a standing offer cannot go through the HAFA process anymore. Files that are outside these provisions can still qualify for a traditional short sale or that of Bank of America’s Cooperative program. After the deadline, files under Fannie Mae and Freddie Mac can be entered into traditional process of short sale or cooperative short sale. The upside is the possibility of relocation assistance for easier transition from home home to another.
If you wish to know more about the short sale program, feel free to get in touch with us. We can assist you achieve a smooth short sale transaction so you can be free of your mortgage problems once and for all.