SHORT SALES WITH HAFA: DEFICIENCY JUDGMENT.. NOT SO SCARY ANYMORE
HOME AFFORDABLE FORECLOSURE ALTERNATIVES (HAFA) PROGRAM HAS BEEN IMPLEMENTED TO ASSIST HOMEOWNERS IN DISTRESS.
Home Affordable Foreclosure Alternative
The HAFA Program became effective April 5th 2010, servicers may participate immediately, or as soon as is practical. The primary options available through HAFA include Short Sale and Deed-in-Lieu of Foreclosure.
With HAFA. . .
Lenders will not pursue a deficiency judgment for the shorted amount.
Your home is worth $300,000 and sell it as a SHORT SALE with HAFA . .
PROBLEM: . . .but your Mortgage is $500,000
There is a $200,000 difference between the two. . .that is the shorted amount that could become a DEFICIENCY JUDGMENT AGAINST THE HOMEOWNER
Lenders before HAFA have reluctantly agreed in a case by case basis to remove this shorted amount after a short sale.
With HAFA, now Lenders have agreed 100% NOT TO PURSUE A DEFICIENCY JUDGMENT AGAINST THE HOMEOWNER
In another words, you are not losing your home, you simply selling it and BREAKING EVEN!
The real definition is:
A deficiency is the difference between the fair market value of the property and the amount received, providing the amount received is less than the amount owed.
This applies specifically for my State of Maryland.
Some other States are exempt from deficiency judgments . .
To find out if you qualify under the HAFA program
With HAFA, the homeowner is also entitled to a $3,000 relocation costs
Find out if your bank is participating in the HAFA PROGRAM here.
HAFA is for you when you simply can not afford your house anymore and a foreclosure is eminent
.
"Maryland and Virginia Homeowners could benefit with the new HAFA Program"
In case you are wondering. .
What is the difference between a foreclosure and a short sale using the HAFA Program?
In a short sale with HAFA you SELL YOUR HOUSE and you owe the lender nothing!
In a Foreclosure.YOU LOSE IT ! and you get a deficiency judgment filed against you*
Click on my eBook about Short Sales to have a clearer vision if you could use a SHORT SALE in order to begin a new fresh start.. .you must have a hardship to qualify.
and also a Gold Member Certified Default Resolution SpecialistTM with (CDRS)
You can call (Fernando Herboso) directly @ 240-898-1848 ext #1 or email : Fernando@Herboso.com
We can help you directly in Maryland, DC or Virginia
If outside our area. ..we can guide you to a local true professional that cares and loves helping people avoid
foreclosure as much as we do!
Just give us a call or email to Fernando@Herboso.com
Short Sales Maryland , DC and Virginia
Fernando, this is a great information. Thanks for sharing. Short sales are often confusing for sellers and some agents.
Fernando, I truly hope HAFA turns out to be as good as it sounds. Getting rid of the possibility of a deficiency judgement is huge.
By the way, your blog looks great.
Fernando - nicely stated, here's hoping that this will have a more positive effect than the previous attempts
Fernando, I find this post very informative and reassuring.
Fernando, what about the 2nd mortgage lienholder? Do they have to agree not to purchase a deficiency judgment also? Because in California, they are usually the main source of a deficiency judgement.
Fernando, your HAFA series is encouraging. I hope many short sellers will ask you for your assistance.
Fernando, I just closed a short sale today and wish this had been available back months ago but I honestly don't know if it would have qualified. Thanks for the valuable information.
Fernando, I don't find this reassuring, as only a few lenders are approving deals in the required timeline so far, and the program does NOT offer ample compensation to junior lien holders nor does it address MI company approval. It will only effect a small portion of deals unfortunately