great news for Short Sale Candidates and Distressed Owners in 2015:
For homeowners who qualify for a HAFA short sale, as of February 1, 2015, the relocation incentive available to the occupant/borrower has more than tripled: $3,000.00…typically does not cover really all moving costs… a whopping $10,000.00.
Yes, you may be eligible to receive a $10,000.00 closing escrow, awarded for moving out of your property, once the sale is complete. Note: Relocation money is issued to the OCCUPANT of the property, even if they are not the owner or borrower (person who obtained the mortgage loan).
So… This means, stay in your property while we complete the transaction HAFA… It is common to miss making mortgage payments during the process. However, it is best to try to keep up with the HOA payments during the process, if your home is a condo/townhouse with an HOA association.
You may be eligible for a HAFA short sale if you meet all of the following criteria: (1.) You have documented financial hardship. (2.) You have not purchased a new home in the past 12 months. (3.) Your first mortgage is less than $729,750.00. (4.) You obtained your mortgage on or before January 1, 2009. (5.) You have not been convicted in the last 10 years of felony larceny, theft, fraud, forgery, money laundering, or tax evasion in connection with a mortgage. or real estate transaction.
*Eligibility criteria are for guidance only. You’ll want to contact a local real estate broker in your area who specializes in helping struggling homeowners to find out with more certainty whether or not you qualify for HAFA.
HAFA approval benefits homeowners in many ways: (1.) You can get free advice from HUD-approved housing counselors and licensed real estate professionals. (2.) Unlike conventional short sales, a HAFA approval completely releases you from your mortgage debt after the property is sold. This means that you will no longer be responsible for the amount that is “less” than the amount you still owe. The deficiency is guaranteed to be waived by the trustee. (3.) When you qualify for HAFA, your mortgage company works WITH you to determine an acceptable sales price. (4.) HAFA has a less negative effect on your credit score than conventional foreclosure or short sales. (5.) When you close escrow, HAFA provides you with up to $10,000.00 in relocation assistance money. (Yes, a check made out to you.)
If you’re having trouble making your mortgage payment, it’s a good idea to contact a real estate agent who specializes in short sales. It’s best to work with a real estate agent who knows your area, but most importantly, one who has been successful in getting short sale approvals for other homeowners like you.
Can your real estate agent give your transaction the direct attention needed to complete the short sale process? Ask your agent or real estate agent if they “do their own files” or if they outsource their short sale files to an outside company that handles the short sale aspects of the transaction.
Proceed with caution if your real estate agent is not the direct contact for your file at all stages. This leaves room for miscommunications and missed deadlines. Ultimately, this could mean the difference between a short sale being approved or denied.
