FEDERAL SHORT SALE GUIDANCE PROGRAM AVAILABLE

On  November  30,  2009,  the  Treasury  Department  released  guidelines  and  forms  for its new Home Affordable Foreclosure Alternatives Program (HAFA).  HAFA is part of the Home Affordable Modification Program (HAMP). 

Short sale procedures for loan servicers are standardized in guidelines under the federal government's Making Home Affordable loan modification initiative for troubled home owners. The guidelines create a path for a short-sale or deed-in-lieu of foreclosure for eligible borrowers for whom loan modification isn't a viable option. The guidelines provide $1,500 in federal funds to help borrowers relocate, $1,000 to help servicers offset their  processing costs, and up to $1,000 to investors to secure release of subordinate liens.

The guidelines prohibit a reduction in agreed-upon commissions (if they're not more than 6 percent) and take effect April 5, 2010, but can be implemented by servicers at any time. Fannie Mae and Freddie Mac are expected to follow this release with their own rules based on these guidelines.

View Press Release

Supplemental Directive 09-09: Entire Guideline

Laure McElwee, Realtor (S)
'Lava Laure'
Sun and Sea Realty, Inc.

75-6547 Naniloa st.

Kailua Kona, HI. 96740

808.217.0429undefined
866.404.4789 Fax
LavaLaure@Yahoo.com

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