HAFA Has Expired... What Next?
Happy New Year! 2017 has arrived and with it comes the expiration of the HAFA program and it's generous relocation incentive. Although many homeowners were able to get their short sale files in before the January 1st deadline, a lot of people were much too busy during the holidays to consider starting a short sale.
The bad news is that the $10,000 HAFA relocation incentive that was given to sellers at the closing of their short sale has gone away. Another key benefit to the HAFA program was the generous amount the program allowed to pay off any 2nd mortgages you may have. The HAFA short sale lenders were allowing $12,000 to be paid to the junior liens (2nd mortgages or liens on your home), a generous amount that made the closing of a short sale relatively easy.
Now that HAFA has expired what will be the benefit of a short sale?
I spoke to Ocwen Loan Servicing yesterday, and accoding to a negotiator in their short sale department, relocation incentives at the closing of a short sale is still available to homeowners. The amount still goes up to $10,000, however, this amount is determined by various factors not all loans qualify.
While the programs to assist homeowners have not gone away, the dollar amounts are unclear at this point. The banks will have new guidelines, and I will keep you informed as I receive more information.
If you have any questions or would like to discuss the possibility of a short sale, contact us at your convenience.