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Agent | Broker Reset Filters to Default Back to List7 Reasons to Market the Home Affordable Foreclosure Alternative (HAFA) Program
April 05 2012
Is now the time to beef up your marketing campaign to homeowners experiencing financial difficulty? Over 10 million residential properties with a mortgage are upside down. Negative equity combined with high unemployment is driving the foreclosure market. REO inventory continues to grow at a disturbing rate. Loss of equity isn't a financial hardship, but when you couple it with high unemployment rates and an increasing cost of living, you have a compelling story for a short sale approval.
In 2009 The Obama Administration first introduced Americans to the Making Homes Affordable (MHA) program. The initial program was established to help struggling homeowners. On April 5, 2010 the Home Affordable Foreclosure Alternative was implemented for non-Fannie Mae and Freddie Mac loans. According to the Supplemental Directive which gives guidance to servicers the HAFA program will implement changes to their program on June 1, 2012 that will be beneficial to homeowners--especially those who are investors of 1-4 unit residential properties.
Over the past five years, numerous programs have been developed to help struggling homeowners. However, none of the programs benefit real estate investors who are struggling. On March 9, 2012, the Making Home Affordable Program announced that they would extend their program until December 31, 2013 and expand the program to include investors.
| NEW | OLD until 06/01/2012 | |
| Deadline |
December 31, 2013 |
December 31, 2012 |
| Relocation Assistance | $3,000 to homeowner or tenant occupied properties | $3,000 to homeowner |
| Occupancy Requirement | NO OWNER OCCUPANCY Requirement | Owner Occupied or Job Transfer Exemption |
| DTI: Debt to Income Ratio | PITI may exceed 31% of gross income at borrowers request | PITI may not exceed 31% |
| Secondary Lienholders | May receive up to $8,500 | May receive up to $6,000 |
| Credit Reporting Guidelines | Account Status=13(Paid or closed account/zero balance) or 65(account paid in full a foreclosure was started) | Mortgage was settled for less than the full amount |
| Other Real Estate Purchases | None previous 12 months | None past 90 days for Job transfer |
Changes go into effect on June 1, 2012.
To ensure that investors are aware of the expansion of the guidelines, now is the time to market your services and let the world know that you specialize in Short Sales and Foreclosures.
If you need help in this area, Marki Lemons Unlimited provides education and training resources to help REALTORS® and entrepreneurs expand their business. The company has successfully trained over 14,000 REALTORS® on short sales and foreclosures through the Accredited Distressed Property Representative (ADPR) Certification Program, Home Affordable Foreclosure Alternative (HAFA), Broker Price Opinion Resource (BPOR), and the Short Sale and Foreclosure Resource (SFR), all address current changes in foreclosures and short sales.
Source: Supplemental Directive 12-02 Making Home Affordable Program