For borrowers who qualify, HAFA (Home Affordable Foreclosure Alternatives) increased the relocation incentive available from $3,000.00 to $10,000.00. The new $10,000.00 payment became effective on February 1, 2015. The incentive is made available to assist the property occupant with the expenses associated with moving (relocation) costs once the HAFA short sale is completed. The occupant does not necessarily have to be the borrower. Once of the reasons that the incentive has increased is that Lenders want to make sure the property is maintained throughout the short sale process and have thus increased the HAFA payment to the occupant. Other benefits of HAFA include: a waiver of deficiency by the mortgage servicer on the obligated borrower and a lower negative effect on your credit score than a conventional short sale.
To qualify for a HAFA short sale, the borrower needs to have a financial hardship, have not purchased a new house within the last twelve (12) months, have a first mortgage that does not exceed $729,750.00, have obtained the mortgage before January 1, 2009 and meet Dodd-Frank Certification criteria in regards to mortgage and real estate transactions. For more information regarding HAFA, please feel free to contact our office at 305-227-4030 or email us at legal@raygarcialaw.com
Law Office of Ray Garcia, P.A.
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