HAFA Short Sale Program with Freddie Mac – Latest News
The (HAFA) Home Affordable Foreclosure Alternatives Short Sale Program is a program that came out through our U.S. Government and was originally noted in the American Recovery and Reinvestment Act, the ‘stimulus’ package that was all over the news in March, 2009.
However, while the HAFA Program was mentioned in the stimulus package, more information did not become available some eleven months later. In April of this year, the HAFA Program began. The most well-known benefits of this program include a $3000.00 incentive at closing to homeowners who participate in the program. Additionally, if borrowers qualify for the program, then the short sale will relieve the borrower of any future liability for the unpaid loan balance.
It is interesting to note that not all investors participate in this program. However, effective August 1, 2010, Fannie Mae and Freddie Mac do participate in the HAFA Program. While their version of the program does have some slightly different guidelines, the goals of their programs are generally the same.
One important change that Freddie Mac made to their HAFA Program is that borrowers cannot participate in this program if they are already in a HAMP Loan Modification Trial Period, if they are performing a HAMP modification, or if they are already being reviewed for a Freddie Mac short payoff.
With these other HAFA Programs, we have been able to get many short sale sellers qualified even after they have attempted a loan modification, during the trial period or after short sale submission. The fact that Freddie Mac is not allowing those individuals to participate will disappoint many borrowers.
Before you look over the fact sheet, you may be wondering how to determine if you have a Freddie Mac loan. Well, click on the hyperlink in the previous sentence and all of you questions will be answered!
Freddie Mac HAFA Bulletin Fact Sheet (June 2010)