Celebrating the Flavor of Tuolumne County
Taste: to perceive or experience the flavor of. Flavor: an indication of the essential character of something.
HAFA Updates – Effective February 1, 2013
Program Updates Effective February 1, 2013
however, Servicers may implement changes immediately
The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the U.S. Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure,specifically through short sales or deeds-in-lieu of foreclosure.
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BEFORE Feb. 1, 2013 |
AFTER Feb. 1, 2013
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| Required Documents | Use of Short Sale Agreement and Request for Short Sale Approval or forms substantially similar in content are required | Use of Short Sale Agreement and Request for Short Sale Approval documents optional |
| The Short Sale Notice (SSN) and the Acknowledgement of Request for Short Sale (ARSS) are now the preferred forms for servicers with regards to HAFA Short Sales. The Deed-in-Lieu (DIL) Agreement is now optional, and the Request for Approval of Short Sale (RASS) and Alternative Request for Approval of Short Sale (Alt RASS) are being phased out. | ||
| Response Time | Servicers required to respond within 45 days | Servicers required to respond within 30 days |
| The time frame for servicers to respond to a borrower’s request for a short sale has been shortened from 45 calendar days to 30 calendar days (generally). | ||
| Pre-Determined Hardship & Affidavit | Affidavit of borrower hardship required for approval of HAFA short sale | Pre-determined hardship (90+ days delinquent and FICO below 620) with affidavit required |
| Borrowers who are 90 days or more delinquent and have a FICO score that is less than 620 will be deemed to have a “pre-determined” hardship. Servicers do not need to further validate the hardship to approve the HAFA short sale. However, they must execute a Hardship Affidavit prior to closing. | ||
| Short Sale Affidavit |
No arms-length transaction or HUD-1 affidavit required
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New HAFA Affidavit to be completed at closing |
| A new HAFA Affidavit is now required, while both the borrower and the buyer must sign. This affidavit certifies the sale is an arm’s-length transaction (the homeownerand buyer have no previous connection to one another), that no money is beinggiven or received outside of the HUD 1, and other necessary information. | ||
| Subordinate LienholderPayoff | Treasury contribution to subordinate lienpayoff $2,000 | Treasury contribution to subordinate lienpayoff increased—up to $5,000 |
| The Department of the Treasury will now provide up to $5,000 as an incentive to payoff secondary lienholders. | ||
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Resale Restrictions
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No resale before 90 days |
Resale after 30 days allowed
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| The current restriction on reselling a property within 90 days after closing is being shortened to 30 days. From 31 to 90 days, the resale price cannot exceed 120% ofthe HAFA short sale price. | ||
If you have HAFA or Real Estate related questions for Sonora, Copperopolis or Tuolumne County I can be reached at 209-536-3000 or robin@pcr1.com
Source: United States Treasury Department via CDPE/Charfen Institute
Celebrating the Flavor of Tuolumne County 