When was hafa implemented

If the servicer has retained a vendor to assist the listing broker, the vendor must be paid a specified amount from the commission. Neither buyers not sellers may earn a commission in connection with the short sale, even if they are licensed real estate brokers or agents.

They may not have any side deals to receive commission indirectly. What else should I know? Under a law expiring at the end of , however, the tax may not apply. Forgiven debt will not be taxed if the amount of forgiven debt does not exceed the debt that was used to acquire, construct, or rehabilitate a principal residence. Check with a tax advisor. There will be a negative effect on credit scores. When does the program end?

Short Sale Agreements must be executed and returned to the servicer no later than December 31, For more information, please visit www. Taking the reins this year is association veteran Leslie Rouda Smith. The HAFA program allows borrowers to leave their properties through two possible means, a short sale or a deed in lieu of foreclosure.

Short sales require you to sell your house for less than what you still owe on your mortgage. A deed in lieu of foreclosure exists when a lender agrees to take a property deed rather than foreclose in order to get title to the property. There are downsides to private short sales and deeds in lieu of foreclosure. In an ordinary short sale, for example, the lender can get a deficiency judgment after the short sale for the balance that is still owing.

However, with a HAFA short sale, the lender approves the terms before the sale is listed and accepts payment in full satisfaction of the outstanding balance on the mortgage. You would be released from the deficiency and would get a certain sum in moving expenses. Loan Resolution executives attribute the growth to the company's ""quality over quantity"" approach when it comes to helping homeowners avoid foreclosure. Loan Resolution Corporation has made a name for itself as a vendor to banks by focusing on the short sale process, specifically HAFA, and is currently working with several top-five banks.

The company says its cradle-to-grave HAFA services are fully compliant, and include a call center for borrower outreach, nationwide network of agents, monthly statistical marketing analysis, and a closing team that works with title companies to ensure a successful closing. The resident will need to vacate the property prior to sale of the property. Vacant properties will not be eligible for the HAFA relocation incentive. Non-borrowers Tenant, legal dependent, parent, or grandparent can now qualify for the relocation incentive if occupying the property at the time when the purchase agreement was signed and would require that they vacate the property upon closing of the sale.

The policy changes are effective June 1, , and will affect properties that are in escrow or any transaction started after that date. The Borrower will be responsible for requesting and managing the Tenant relocation assistance, including submitting required proof of occupancy and other or additional documentations requested by each of the lenders.