New Guidelines in Foreclosure Alternatives Program Help Those Completing Short Sales
New guidelines were introduced last month to speed up short sale transactions. The new rules go into effect April, 2010 and ends December, 2012. This plan is called the Home Affordable Foreclosure Alternatives (HAFA) Program and it provides incentives to borrowers, servicers and investors.
This plan allows borrowers to receive preapproved short-sale terms before listing the property. Currently, servicers will not discuss acceptable terms until a purchase contract has been received. HAFA has also streamlined the documents used during a short sale. This will hopefully simplify the process thus saving time. The incentives to borrowers include being released from all mortgage debt if you complete a short sale, as well as receiving $1500 in moving expenses.
Other changes include prohibiting the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement and requiring lenders approve or reject a short sale within 10 days once a complete package is presented.
If you've fallen behind in your mortgage payments or received a pre-foreclosure letter from your lender please let me help. I am a Certified Distressed Property Expert (CDPE) so have training and certification in the short sale process. Visit MankatoHomeHelp.com for more information.