Great news for rental property owners who need to sell their underwater property.Â The federal short sale program has announced new guidelines effective June 1, 2012 that now allow participation for previously ineligible loans.
HAFA UPDATES 2012
- Non owner occupied homes are now allowed-rental, second home, vacant properties will now be allowed to participate in the government short sale program.
- Elimination of the 31% payment requirements opens the program up to more homeowners
- Faster turn times are required in order to move more sales to closings and eliminate buyer fallout
- Second lien holders will now be paid up to $8500, previously capped at $6000
- $3000 incentive can be paid to owner or the tenant to help with relocation expenses
- Borrower can continue making mortgage payments to less the impact on their credit
- Standard credit reporting code
The HAFA short sale program provides some valuable protections for underwater sellers, and also encourages lenders to participate and abide by the guidelines with monetary incentives.Â The goal is to provide struggling homeowners with a fresh start, and eliminates the possibility of a deficiency balance.Â Homeowners will be able to re-enter the housing market sooner, and in some cases will be eligible to buy a new home immediately.
Susan Gregory is a Certified HAFA short sale specialist, a Certified Distressed Property Expert, a Short Sale Foreclosure Alternatives and Certified Negotiation Expert agent.Â She has helped many homeowners with foreclosure prevention and specializes in the Orange County Ca area.