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With a Non Profit Buyer, Seller Stays In Home After Short Sale! Directive 11-02


Making Home Affordable Supplemental Directive 11-02

Making Home Affordable Supplemental Directive 11-02

Can I stay in my home after a short sale?

With a non profit buyer, Seller Stays In Home After Short Sale!

Sacramento Certified HAFA Short Sale Specialist Forth Hoyt, announces New HAFA Supplemental Guidelines:

A Brand New Program May Allow Homeowners who do a Short Sale To Stay! Newest HAFA Guidelines May Allow Families To Stay In Their Home After A Short Sale! It’s Almost as good as a principle reduction to today’s market value!

You see the Home Affordable Foreclosure Alternatives (HAFA) program in the past required that a short sale be an “arm’s-length” transaction, meaning the buyer and seller could not be related and could not have had a prior prior agreement for the homeowner to stay in the property after a short sale.

But the new Supplemental Directive amends this restriction and allows servicers the discretion to approve short sales to non-profit organizations with the stated purpose that the property will be rented or resold to the borrower, so long as all other HAFA program requirements are met.”

Here is the complete verbiage from Making Home Affordable Supplemental Directive 11-02: (otherwise known as directive 1102)

Y. Section 7.3 of Chapter IV is amended to add the following text at the end of the
A servicer may in its discretion approve an SSA, RASS or Alternative RASS between a servicer and a borrower that provides an option for the property to be sold to a non-profit organization with the stated purpose that the property will be rented or resold to the borrower so long as all other HAFA program requirements are met. Servicers offering programs of this type must include program descriptions and conditions in their HAFA Policy as well as retain evidence demonstrating that any such organization is a non-profit organization.

For homeowners looking for options, the new HAFA program now allows a homeowner to sell their home, rent it back for three years and then buy it back at a pre-determined price.

PROGRAM DETAILS: Remember, this is all subject to servicer and investor (entity that owns your loan) approval- remember, it’s a brand new program, with not much history as of yet.

• You must work with a real estate broker or agent who has a relationship with a qualified non-profit organization. (we do, a local non-profit with all the credentials!). Not all non-profits are qualified or have the resources.

• The non-profit will purchase the home, at today’s market value.

• The seller will then rent the home back for a minimum of three years, allowing their credit history and FICO scores to heal so that they can qualify for a mortgage.

• Homeowners speak with a qualified HUD counselor, attorney and tax expert to ensure that the program is the right fit.

• If everything goes as planned, the former owner can repurchase the home.

Not all Folsom short sale homeowners qualify for the program. Folsom Borrowers must have sufficient income to afford the monthly rent payments in addition to their other debt payments.

Certified Short Sale Specialist Forth Hoyt reminds homeowners who don’t qualify for this program can still do a traditional short sale, which may include a Sacramento area Short Sale relocation assistance or Short Sale incentive from $3,000 to as high as $45,000, depending on their lender, loan amount and individual situation.

Now that the Treasury has updated the HAFA Short Sale guidelines; HAFA Extension and Update, Homeowners do not need to live in the home and can even still be current! (most investors/servicers require homeowners to be behind in payments in order to qualify for a Successful Short Sale).

More Questions About HAFA, HAFA Short Sale or Sacramento HAFA Short Sale Relocation Assistance? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center

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