Many people have heard the term, "Short Sale" but don't really know what it is or how it works. A "Short Sale" is a term used to describe the agreement of the lender to accept less for the home than what is owed on it. This may seem like a simple process but it's not. In order for the lender to agree to accept less than what is owed, you must meet certain criteria.
HAFA Qualifications
(Home Affordable Foreclosure Alternatives)
It's important to know the rules and guidelines for the HAFA short sale program if you're considering the short sale option. Unfortunately, not everyone qualifies.
To qualify, you must:
- Own a home that was purchased before the year 2009.
- You must be living in the home as your primary residence, and must have been previously considered for other foreclosure prevention options including loan modification.
- Borrowers must also meet HAMP eligibility, (Home Affordability Mortgage Program), but can be either delinquent or current on their mortgage payments. Even if current, the borrower must be able to demonstrate financial hardship.
Guidelines to Help Determine Eligibility:
The home must be your primary residence. In other words, if you have multiple residences, do you spend most of your time in this residence?
Is the amount you owe on your first mortgage equal to or less than $729,750? (Do not include the total of your second mortgage.)
Are you having ongoing financial trouble that makes it difficult for you to make your mortgage payments each month?
Did you get your current mortgage before January 1, 2009?
Is your monthly payment on your first mortgage (including principal, interest, taxes, insurance and homeowners association dues, etc) more than 31% of your current gross income?
If you answered yes to all five questions, then it is very likely that you may qualify to receive assistance through the HAFA program.
You should consult with a Realtor® that is certified in the short sale process. It's extremely important that you work with someone that is familiar with the process and knows what they're doing. Otherwise, you may have disastrous financial results.
For more information, please feel free to contact: Janet Owens janetsoldit@gmail.com or 281.844.6584
