Four Things Santa Maria Home Sellers Should Know About the HAFA Short Sale Program

HAFA stands for Home Affordable to Foreclosure Alternatives and it is a government program designed to help home owners who are in danger of losing their home to foreclosure.

•1)      You must apply for a HAMP (Home Affordable Modification Program) loan modification to be eligible for HAFA. If offered a modification, you can turn the loan modification down, or even if you are turned down under HAMP, you can request a short sale under HAFA if a short sale is the best answer for your situation.

•2)      First mortgage holders who participate in HAFA must forgive the deficiency between what you owe and the amount the home is sold for in a short sale.  This is an important feature of the HAFA program.   In the past in some instances, accepting a foreclosure was preferable to short sale if the lender would not offer deficiency forgiveness.  HAFA eliminates this unknown up front and requires lenders to forgive deficiency balances.

•3)      No guessing about the price your lender will accept.  HAFA has a procedure to get an approval on the price of your home before you put it on the market as a short sale.  This makes the process of selling your home as a HAFA short sale quicker and more efficient.

•4)      You can pick your own REALTOR when using the HAFA program.  They will offer you a list of agents when applying for HAFA, but you are free to select any agent you choose.  Even though the bank pays for the agent through the proceeds of the short sale, your agent works for you, not the bank.  Select the right agent for you.

I am a local real estate broker, attorney, Certified Distress Property Expert (CDPE) and Certified HAFA Specialist (CHS) and I specialize in short sales.  Contact me today at (805) 878-9879 for a free short sale consultation, or visit my website for short sale basics.

Tni LeBlanc, Mint Properties (805) 878-9879

* Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement – this article does not offer legal and tax advice.

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