What are the timelines associated with HAFA?
In order for the borrower and lender to receive government incentives through the HAFA program, a strict timeline must be adhered to.
30 days: Within 30 days of a homeowner being turned down from Home Affordable Modification Program (HAMP), a homeowner must request participation in HAFA short sale through their lender or servicer.
120 days: The short sale agreement (SSA) requires that the homeowner find a buyer within 120 calendar days from the date the SSA packet is mailed to the homeowner.
245 day extension: The lender can elect to extend the short sale agreement deadline for another 245 days (not to exceed 12 months in total).
90 days: The end buyer agrees to hold the property for at least 90 days after closing.
The SSA must be an “arms length” transaction where the buyer and seller do not have any underlying agreements or promises to each other. The real estate agent receives a full 6% commission for handling the sale. The vacancy date is determined by the SSA contract. For a deed in lieu of foreclosure, the vacancy date is within 30 days after the deed was signed over to the bank.
If you have any questions about HAFA short sales, please contact us.