Treasury Department Plans to Streamline Short Sales
This entry was posted on 12/30/2009 9:29 AM and is filed under Real Estate.
On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is a component of the Home Affordable Modification Program. The National Association of Realtors has been urging the current administration for months to take action to address the many problems with short sales (which can take forever, I might add).
HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure used to avoid foreclosure of a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of the program. Program features include pre-approving sales terms before listing the property, paying incentives, imposing deadlines at each stage, etc.
The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements.
source: National Association of Realtors
