Southern New Hampshire Real Estate and Short Sales

Short Sale Program Offers $10K Assistance To Struggling Homeowners

If you've been struggling with your mortgage, you are an owner occupant, you don't have a government loan (FHA, USDA or VA) and your loan is not owned by Fannie Mae or Freddie Mac, you may be eligible for a $10,000 relocation incentive if you participate in a HAFA (Home Affordable Foreclosure Alternative) Short Sale beginning February 1, 2015.

The idea behind the increased incentive is that it will help the distressed homeowner more easily accomplish aHAFA Short Sale Relocation Incentive graceful transition out of a property they can no longer afford and into more financially comfortable living arrangements. 

It is further hoped that the incentive will encourage the borrower to stay in their home, keeping it maintained, until the successful short sale closing occurs.

In addition, the amount of the gross proceeds that may be payed to a subordinate lien holder in order to obtain a release of that lien and a full release of borrower liability has been raised from an aggregate cap of $8,500 to not less than $12,000.

The basic criteria for HAFA eligibility is as follows:

  • You have a documentable financial hardship.

  • You have not purchased a new house within the last 12 months.

  • Your first mortgage is less than $729,750.

  • You obtained your mortgage on or before January 1, 2009.

  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

As previously mentioned these changes refer to non-government loans  and loans that are not owned or guaranteed by Fannie or Freddie.  However, in the past when major changes have been made to one of the programs, the others have quickly followed suit.

To find out more about the HAFA program, or any of the other short sale programs, contact me at 603-490-5344.

0 commentsJoy Baker • January 21 2015 09:14AM
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