The Home Affordable Foreclosure Alternatives (HAFA) is one of the most important developments in the Real Estate industry today. HAFA helps make short sale processes and foreclosures much simplier and faster. Below is some important information about HAFA.

Details of HAFA

HAFA was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways:

• Compliments HAMP by providing viable alternatives for borrowers who are HAMP-eligible
• Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis
• Allows the borrower to receive pre-approved short sale terms prior to the property listing
• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement
• Requires that borrowers be fully released from future liability for the debt
• Uses standard processes, documents and timeframes
• Provides financial incentives to borrowers, servicers and investors

HAFA provides financial incentives as follows:

• Financial incentives for lenders participating in the program include a $1,000 servicing bonus
• Homeowners can receive up to $1,500 in relocation assistance (which, in some cases, may classify as taxable income) after a short sale or deed-in-lieu has been executed
• Lenders pay all servicing fees - homeowners suffer zero out-of-pocket expenses

 All information was found on http://www.cdpe.com/home. If you have any questions please feel free to call Steve Bond @ 801.400.6580.