Selling Short? Uncle Sam Provides Incentive!
For those who legitimately need to sell their home due to some form of financial difficulty… the government is now going to make it worth their while.
Beginning April 5th of this year, earlier for others… the government is releasing the HAFA program, which stands for “Home Affordable Foreclosure Alternative Program.” The goal of HAFA is to incentivize investors and lenders to work with legitimate short sales which in turn will ease the weight and future burden of foreclosures on the economy.
HAFA Incentives For Borrowers
- Allows borrowers to receive pre-approval short sale terms before listing the property.
- Requires that borrowers are FULLY RELEASED from future liability from the first mortgage debt burden such as promissory notes, deficiency judgements, or cash contributions.
- $1,500 provided to borrower for relocation expenses.
These incentives are huge! Wouldn’t it be great to go in to a short sale transaction knowing that the bank will approve it, that they are on a time line, that you will be fully released from the 1st trust debt, and receive help with relocation expenses? Now, there will obviously be a backlash from those who have no financial hardship. Nevertheless, there are procedures in place to avoid as many of these situations as possible.
If you would like to schedule a time to meet with me and my attorney at no cost to discuss your options please contact me.
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