San Diego, CA (PRWEB) April six, 2010
With foreclosures nevertheless increasing, interest prices probably to go up and the government’s HAMP loan modification plan stalled on the tracks, HAFA (the Property Affordable Foreclosure Options) initiative may offer lenders and homeowners with some light at the finish of the tunnel.

An expansion of the Home Cost-effective Modification Plan (HAMP), HAFA offers a streamlined approach for quick sales and deeds-in-lieu that will allow property owners to discharge their 1st mortgage debt without the credit-destroying step of foreclosure. And, in a small stroke of governmental genius, it supplies a $ 1,000 incentive to banks to permit quick sales and a $ 1,500 bonus to home owners for the purpose of relocation.

According to Brian Yui, CEO of San Diego actual estate brokerage HouseRebate.com, “This system could save countless homeowners from foreclosure. HouseRebate has a fleet of agents who specialize in quick sales. They are professional negotiators and are intimately familiar with the HAFA plan. It is critical for property owners who want to participate in this program to work with experienced agents to comprehend the best outcome.”

The HAFA system, like its massive brother HAMP, has eligibility recommendations. The house should be the owner’s principal residence, the initial mortgage must predate 2009, the unpaid principal must be significantly less than $ 729,750 for a single-loved ones dwelling, the borrower’s monthly payment have to exceed 31% of their gross earnings, and the mortgage must either be delinquent or a default be reasonably foreseeable.

As soon as these criteria are met, borrowers will receive pre-authorized quick sale terms from their lender, like the minimum acceptable proceeds of the sale, ahead of listing their property with a Realtor and have 120 days-with extensions permitted up to a total of 12 months-to sell their property. Primarily based on the brief sale agreement with the lender, HAFA needs house owners to be fully released from any future liability on their initial mortgage debt, and in some circumstances, subordinate debts, so that when the house is sold, the borrower is free of charge and clear of their mortgage.

So is there a market for short sales? “We have cash purchasers lined up to take benefit of short sales,” says Yui of HouseRebate.com. These are men and women who are in a position to purchase distressed properties quickly, relieving home owners of their debt burden. It’s a win-win situation, one thing we have not observed for a although in this difficult market place.”

The program ends on December 31, 2012. HAFA does not apply to FHA or VA loans. As with any government system, there is a good deal of paperwork, albeit standardized, so property owners wishing to take advantage of the relief presented must function with a Realtor knowledgeable in quick sales.

HouseRebate.com, a member of the National Association of Realtors, is a full-service value true estate company that maintains a seasoned staff of agents. They provide all the services that traditional true estate offices offer you at discount costs, with decreased commissions on sale, and rebates of 33 percent on commissions of purchases. HouseRebate has agents who specialize in short sales and are familiar with HAMP and HAFA recommendations.

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