What is a HAFA short sale?

The Home Affordable Foreclosure Alternatives (HAFA) short sale program was a government-sponsored program designed to ease the process of real estate short sales. It was effective from April 5, 2010 through December 31, 2016. Homeowners seeking relief must now work directly through their lender.

Can you use FHA on short sale?

If you have an FHA loan, you can qualify for an FHA loan short sale (Federal Housing Administration) if the Department of Housing and Urban Development (HUD) reviews the file and determine that you have a qualifying hardship. All FHA short sales are governed by HUD guidelines.

Can you negotiate with the bank on a short sale?

Can You Negotiate A Short Sale? It is entirely possible to negotiate a short sale, but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.

What is the waiting period for an FHA loan after a short sale?

Following a short sale, a buyer generally has to wait a minimum of 36 months before being able to secure another FHA backed loan. To secure another loan, the borrower must have maintained a good credit standing following the financial hardship.

What does Hafa stand for?

Definition. HAFA. Home Affordable Foreclosure Alternatives (real estate program)

Can you do a 203K on a short sale?

A solution to that problem is to use either a Streamline FHA 203K or Fannie Mae Homestyle purchase mortgage. In this way the “short sale” buyer can borrow a minimal amount on their purchase mortgage to allow the repairs to be made after closing which may even raise the value of the house.

How do I ask a bank for a short sale?

Be Relentless in Short Sale Negotiations Be aware that the bank isn’t forced to agree to anything. Ask for every agreement to be in writing, but don’t be surprised when you don’t get it. Make notations and keep a record of every conversation, with whom, and the date and time. You may need it in court.

Can you make a lower offer on a short sale?

List price for a short sale. This is the price the listing agent and the seller agree upon. It is used to entice an offer. It can be high; it can be low; it can be right on the money.

What is home affordable foreclosure alternatives?

The Home Affordable Foreclosure Alternatives (HAFA) Program The HAFA program allows borrowers to leave their properties through two possible means, a short sale or a deed in lieu of foreclosure. Short sales require you to sell your house for less than what you still owe on your mortgage.