In occasions of actual estate crisis, there are various property owners who are having a tough time coping with their mortgage payments plus, they face the opportunity of foreclosure becoming a possibility. In addition, behind these anticipated foreclosure situations, there are several stories running beneath them.
It is not a shock to hear depressing economic stories of hardship due to a single being laid off and thus, lost his source of revenue. There are stories that speak of monetary difficulty of property owners because of elevated mortgage payments. Or stories in San Bruno wherein a household is basically possessing difficulty balancing their economic sheet because of unexpected boost in expenditures for various reasons. All of these stories are possible causes that prompt most property owners to file for a foreclosure on their properties.
Typically, the answer for this monetary problem is to decide on for a short sale instead. This alternative is usually the answer property owners resort to so that they resolve their monetary dilemma and recuperate from the hardship in San Bruno they are currently experiencing. In times like these of economic slump, short promoting your property is as difficult as the present problem property owners are experiencing.
The good news however, is that the government has sponsored a system named Property Inexpensive Foreclosure Options (HAFA). So, what is the HAFA short sale program then?
Below is details about HAFA and how this might repair your foreclosure problem and as an alternative get a short sale.
HAFA is a short sale system initiated by President Obama as component of his Making House Cost-effective System or HAMP. Basically, it assists sellers acquiring a short sale in a matter of days.
This plan will be place into action from April 5, 2010 to December 31, 2012. The HAFA plan has its aim and a promise of a short sale approval within ten days. In addition, it promises the seller of up to $ 3,000 cash upon closing of the deal for relocation and other incentives.
Who Are Eligible for HAFA Plan?
As there are many stories that run in the undercurrent of every single looming foreclosure, what HAFA desires to address is the delivery of short sales within days for these that can meet the criteria to apply for this program.
It need to be taken note that there are only 5 criteria in order to be qualified for the HAFA plan, yet all criteria need to be met so that an interested homeowner could apply for this foreclosure alternative system instituted by President Obama.
Criteria for HAFA eligibility:
o The system is proper only to individual residences
o Since there is a mortgage involved right here, the quantity of mortgage should not exceed $ 729,750
o The homeowner ought to be experiencing economic crisis such as loss of a job that translates to loss of supply of earnings to spend for the mortgages. The borrower can be fit for one particular by experiencing a steady enhance in mortgage payments, by which he can’t cope with it. And lastly, the homeowner ought to be experiencing an unexpected boost in expenditures such as emergency medical needs and related urgent expenditures.
o The mortgage ought to also have originated before January 1, 2009
o The principal, interest, taxes, and insurance (PITI) mortgage payment, such as those of Homeowners Association (HOA), ought to be more than 31% of the borrower’s gross monthly earnings
A homeowner really should keep in thoughts that in order to apply for the HAFA short sale plan, these criteria need to be met. A ‘NO’ response to any one of these criteria can mean ineligibility in the HAFA short sale system.
Can’t Get Pass through HAFA? The Method
What if a homeowner failed to pass the criteria set by HAFA therefore rejected on short sale system?
The homeowner can take the initial alternative of in search of in San Bruno the help of a skilled short sale agent. Short sale agents are usually knowledgeable about the intricacies of government-sponsored programs like the HAFA short sale system. They can support the distressed homeowner maneuver a way to get included in the option short sale as offered by the US government.
HAFA’s Short Sale Agreement (SSA)
The Short Sale Agreement or SSA of HAFA requires the homeowner to locate a buyer to complete the transaction not less than 120 calendar days beginning from the date the SSA is mailed to the homeowner. The homeowner even so, has the in San Bruno solution to extend this deadline for an additional 245 days. This will then give the homeowner a total of 12 months to locate a buyer for his house and full the transaction for the short sale.
It is also contracted in the SSA that the transaction have to be at ‘arms-length.’ Furthermore, the end purchaser need to also agree that he would hold on to the residence for at least 90 days right after the transaction has been completed. The SSA also supplies the listing real estate agent an undiscounted 6% commission.
What the HAFA short sale plan primarily emphasizes is the need of those who are experiencing financial trouble, which could then lead to unpaid amortizations and an ugly looming foreclosure. This plan is created for property owners who think that it is a wiser choice to merely walk away and turn to short sale than end up with nothing when a foreclosure is bound to in San Bruno come about. This is also an excellent option plan for these who want a rapid short sale for foreclosed houses. There may be some complexities involved in this program, but for those who are in financial difficulty this is definitely a good deal that ought to be taken with significant consideration.
Contact me about the San Bruno short sale process
Francisco is a Real Estate agent at Prudential California Franciscan Properties 01504758, covering the greater San Bruno area.
Helping San Bruno home owners avoid foreclosure with a short sale
Francisco Gonzalez specializes in short sales in San Bruno. I am your San Bruno Short Sale Specialist Realtor and San Bruno loan modification and distressed property expert. This article and content is for general informational purposes and may not be accurate. This should not be taken as legal advice, technical or tax advise under any circumstance. Seek legal advise and representation in all legal matters.