Transcript IT Status Report

HAFA Overview Training- Agenda
1
What is HAFA? 1
2
Overview & Benefits of HAFA
2
3
HAFA Process
3
4
HAFA Policies
4
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PART 1:
What is HAFA?
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PRESIDENT’S PLAN
Housing Affordability & Stability Plan (HASP)

Housing Affordability Refinance Program (HARP)
Low Cost Refinance Up To 125% Of Value

Housing Affordability Modification Program (HAMP)
Drop Payment To 31% Of Homeowner Gross Monthly Income

Housing Affordability Foreclosure Alternatives (HAFA)
Streamlined Short Sale Program
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HAFA PROGRAM
Overview of Treasury’s HAFA Program
Begins April 5, 2010
To qualify, borrowers must:
Have been considered for other foreclosure prevention
options
Meet HAMP eligibility
Do not need to be delinquent
Servicer will set monthly mortgage payment during marketing
period-not to exceed 31% of the borrowers gross monthly
income
Servicers receive $1,500 incentive for short sales and deed-inlieu
Borrowers receive $3,000 relocation assistance at closing
Borrowers are released from first mortgage lien within 10
4
business days from the date the servicer receives sale
proceeds
PART 2:
HAFA Process
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HAFA PROCESS
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PART 3:
HAFA Policies
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HOW TO GET A FREDDIE MAC SHORT SALE OR DEED IN
LIEU
●
Ensure that the property is accurately priced for listing and
marketed effectively
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Work to obtain an offer that is at or near the Fair Market Value
●
Work with a borrower to make contact with the Mortgage Servicer
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Help the borrower in submitting all documentation that is needed
●
Assist in negotiating the offer with junior lien holders, borrowers,
and others involved in the transaction
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Ensure that the sale is an “arms length transaction”
●
Work to facilitate and accelerate the closing process
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DEED-IN-LIEU (DIL)
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Must have tried to do a short sale
●
Must have had it listed for at least 90 days
with no offers
●
Must have had it listed with a REALTOR
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NON- HAFA SHORT SALES
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BENEFITS SUMMARY
Benefits of HAFA Program
● Eliminate the need for potentially lengthy & expensive
foreclosure proceedings
● Preserve conditions and value of the property
● Minimize the time a property is vacant
● Upfront pricing eliminates fake offers and low bids.
● Gives incentives to homeowners to participate.
● Full release of Debt on First Mortgage
● Freeze the foreclosure proceedings and give time to sell
● Pre-approved pricing to listing agent
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