Home Affordable Foreclosure Alternatives Attorneys (HAFA)

At Newland & Newland, LLP we are HAFA short sale program lawyers. Oftentimes our clients get $3000.00 towards relocation based on the United States Treasury Department HAFA short sale program and homeowners can financially benefit from a short sale. The Obama administration created the program to encourage lenders to do short sales.

HAFA also limits the ability of the bank to engage in activity that would result in a deficiency judgment. Determining whether or not you qualify for HAFA, the following questions must be asked:

  • Do you live in the home or lived within the home in the past 12 months?
  • Do you have documented hardship?
  • Have you purchased a new home within the past 12 months?
  • Is your first mortgage less than $729,750.00?
  • Did you obtain your mortgage on or before January 1, 2009?
  • Have you been convicted within the last 10 years of a felony, larceny, theft, fraud, money laundering or tax evasion in connection with a real-estate transaction?

It is also important to note that in order to qualify for a HAFA you must consider the following;

  • FHA and VA loans do not qualify for HAFA.
  • The property must be the homeowners primary residence
  • The loan must be a first mortgage on the premises
  • Homeowner must be overdue in payments or in default status in the near future
  • The borrowers monthly mortgage payment must be more than 31% of the borrowers gross income

HAFA has some interesting characteristics because the borrower can receive a pre- approved short sale condition letter before the property is even listed. In addition the terms of this letter will contain the minimum amount of the net proceeds and the closing costs the bank will be willing to acknowledge.

The transaction must actually be an arms length transaction and the purchaser may not have any close affiliation with the seller and the buyer may not resale the property for 90 days.

Please contact Newland & Newland, LLP for more information about short selling and receiving the benefits of HAFA.

  • Newland & Newland LLP, Attorneys, Arlington Heights, IL
  • Lawyer.com