The HAFA program simplifies and encourages short sales and deeds in lieu of foreclosure. It will permit pre-approved short sale terms before a property is listed; release borrowers from future liability for the debt; provide financial incentives to borrowers, servicers, and investors; and prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval.
Under terms of the program, the borrower and/or listing broker have three business days to submit an executed purchase offer and related documents to the servicer on a short sale, and the servicer has 10 business days to respond to an executed purchase offer.
The servicer also will determine the minimum net proceeds for a short sale. If an offer presented to the servicer by the borrower or listing broker meets the net proceeds requirement, then the servicer must accept it.
The program currently is available only for non-Fannie Mae- or Freddie Mac-owned loans up to $729,750 and is scheduled to take effect April 5, 2010. It is expected that many lenders will choose to implement it before the deadline.
While there is some vague language… I’m hopeful that this program will help more homeowners stay in their homes or get the help they need. What are your thoughts?
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=1dd53d8f-e83f-435d-9a33-b51aac9cd14a)