Folsom Short Sales! Brand New Short Sale Program Allows Sellers To Stay In Home! Supplemental 11-02
Folsom Family Stays After Short Sale
Happy Folsom Family Stays After Short Sale
Seller Stays In Home After Folsom Short Sale! Folsom Certified HAFA Short Sale Specialist Forth Hoyt, Announces New HAFA Supplemental Guidelines:
A Brand New Program May Allow Folsom Short Sale Homeowners 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 in Folsom 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 propertyafter a short sale.
This Supplemental Directive amends this restriction to allow servicers the discretion to approve 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:
Y. Section 7.3 of Chapter IVis amended to add the following text at the end of the Section:
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 Folsom homeowners looking for options who qualify, 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 toservicer 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.
Folsom Certified Short Sale Specialist Forth Hoyt reminds homeowners who don’t qualify for this program can still do a traditional Folsom short sale, which may include a Folsom Short Sale relocation assistance or Folsom Short Sale incentive from $3,000 to as high as $45,000, depending on their lender, loan amount and individual situation.
As a Certified Folsom, CA HAFA Specialist, I answer many questions about HAFA Short Sale Cash for Keys to Folsom California short sellers. And 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 in Folsom).
More Questions About HAFA, HAFA Short Sale or Folsom HAFA Short Sale Relocation Assistance? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center