HAFA Short Sale Guide

HAFA Short Sale Guide and HAFA News…



A real estate Short Sale is when a Lender agrees to sell the home at a price that is less then what is owed on the property. A HAFA Short Sale is a short sale that qualifies for the latest government anti-foreclosure program.  HAFA sets distinct guidelines and incentives for banks and lending companies so that you will know whether or not you can complete a short sale. One of the common myths about short sales is that they take forever to complete. HAFA makes sure that short sales happen more quickly by streamlining the short sale process.

Hurry! Call me today- 916-316-3810. In five minutes we can find out whether you are eligible for HAFA’s Recourse protection and HAFA’s $3,000 In Cash For Keys (Relocation Assistance)

Read more about howHAFA speeds up the short sale process here.

There are a number of government anti foreclosure programs available to provide you with solutions.  Which do you qualify for?

Buying a Short Sale

When you purchase real estate, sometimes it can be purchased as a result of a “Short Sale” which is nothing other then the bank agreeing to sell the home at a price less then the mortgage balance. As a result of the home being sold as a “short sale” people assume that they are getting a great deal. This is not always the case. Although purchasing a short sale is often a great way to purchase real estate, many times due to the real estate market going through a downturn you can purchase a home and still experience a reduction in value. I feel that the key to having success when you purchase a short sale is to make sure that you do research on the market conditions and area of the home. Another important factor is that you are able to hold and carry the property for a minimum of 3-5 years until the real estate market improves.

Short Sale Process

The short sale process can be very confusing because it is not as common as a regular real estate transaction. Typically the short sale process takes longer because you have to deal directly with the bank and gain their approval to sell the home. When a client makes an offer to purchase a real estate short sale they do not have the benefit of getting a quick response like they would from a regular seller.

The short sale process begins with the client having to show that they are eligible for a short sale. All lenders typically require 2 years of tax returns, 2 years of W2’s, 2 most recent months of bank statements for all accounts, 2 months of paystubbs and a hard ship letter. The process of getting approved for a short sale is the exact opposite of what a borrower goes through when they are trying to obtain financing.  When a borrower obtains financing they have to show that they can afford to make the mortgage payments. When a seller is trying to get the bank to approve them for a short sale, they have to show the bank that they have made every attempt possible to try and make the payments. If a lender sees that they have other liquid assets they will not be very likely to help a seller out and approve them for a short sale.

Questions about your particular situation? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center.

Short Sales in Sacramento

Sacramento is an area that has experienced a large increase in home values the last few years and as a result of home values increasing and the real estate market going through a correction or cooling off we are seeing home values come down which can result in the home being worth less then what the mortgage balance is. As a result of someone not being able to make their mortgage payments or need to sell their home this would create a “Short Sale” and result in the bank having to approve the property to be sold for less then what the mortgage balance is. For investors, this can create opportunity’s to purchase real estate.

Tips for Buying Short Sales

The best tip I can give you when you are considering a short sale purchase is to do your home work. This comes down to research and knowing the area you are about to purchase in. When you purchase a short sale because of a decrease in home values, you need to know if you have reached the bottom of the market or if you can expect to see prices decline. It is almost impossible to know this but you should look up property values over a 10 year period and analyze what home values in the area have done. Doing this over a 10 year period will give you a better idea of the market and allow you to make a better decision. If you do your homework, you should be able to establish a very solid real estate portfolio by purchasing real estate via a “Short Sale”.

Short Sale Services

Typical short sale services from a real estate company / agent will consist of them helping the seller carry out what can be a very complex process of dealing with the bank. Every bank is different and some are very open to helping you with a short sale and others wont even talk to you. Having a experienced real estate agent can make all of the different. If they know what they are doing they will truly provide you a very valuable service.

Do’s & Don’ts of a Short Sale

What you need to do if you can’t make your mortgage payments is take action. You may have time to do a short sale and not have a foreclosure show up on your credit. The key is taking action, speaking to your bank or finding a experienced real estate agent that knows how to do a short sale. You don’t want to waste time because your home may go into foreclosure.