As of June 1, 2012 the Treasury Department announced the following changes to the HAFA Program (Home Affordability Foreclosure Alternative):
- The program has been extended to December 31, 2013. The short sale can be initiated up until this time as long as the closing date happens on or before September 30, 2014.
- Previously only owner occupied properties where eligible. Now they have extended the program to non-owner occupied properties which include rentals, second homes and vacant properties. However, the property cannot be owned or secured by a business entity.
- HAFA relocation assistance of $3,000 will be paid to the primary resident whether it be the borrower or tenant providing that the property be vacated upon closing of the transaction. Vacant properties do not qualify for HAFA relocation assistance.
- If HAFA relocation assistance is provided, the HUD must be reflected appropriately.
- If there is a tenant living on the property, it is the borrowers responsibility to ensure the property is vacated by close of escrow.
For more information on HAFA guidelines, go to: http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx. Or feel free to contact me, and I would be glad to answer any questions.
Better Homes & Gardens Real Estate