The new HAFA rules are not such a new topic of discussion, but they are new in practice since they only just went into effect this past month. Borrowers (sellers) who are considering a short sale should become well educated on HAMP, HAFA, the short sale process and what they all mean to their specific circumstances. If HAFA is the correct alternative, they should request a short sale agreement from their lender. Then the borrower has two weeks to respond and four months to sell the house. During this time, the borrower should hire a real estate agent to list the house and the lender will assess the value. The borrower should continue to make mortgage payments up to 31% of their monthly income. While the lender is assessing value and the borrower is reviewing potential offers, the lender should be determining the minimum acceptable net proceeds. However they may not reveal this number to the borrower or their real estate agent. If a buyer makes an offer within the four months allowed to sell the home, the buyer and the borrower must submit a request for approval of short sale along with any other required documentation to which the lender has 10 days to reply.
For more detailed information read How new short sale rules can help you or contact Pat Holkesvig & Your Home Team at 209.471.6516 or by email at [email protected]. Pat Holkesvig and Your Home Team are The Central Valley’s Short Sale Specialists. We process Stockton Short Sales, Elk Grove Short Sales, Lodi Short Sales, Lathrop Short Sales, Manteca Short Sales, Modesto Short Sales, Mountain House Short Sales and Tracy Short Sales.
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