New Short Sale Program

25Feb10

A new government program, the Home Affordable Foreclosure Alternative Program (HAFA), will simplify short sales for sellers who have already applied for a loan modification as discussed below. HAFA streamlines the short sale process by pre-approving the seller and the terms of the short sale prior to listing the home for sale. Thus, the seller will be approved for a short sale based on documentation already provided to the lender as part of a loan modification. The seller will also know the net proceeds required by the lender before an offer to purchase the home is even made. Finally, the lender must forgive the seller for the rest of the mortgage not paid by the short sale.

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf