A New Short Sale Program!

Monday, May 3rd, 2010 | Money, Real Estate | No Comments

The U. S. Treasury Department has implemented a program to improve the entire short sale system. The program has only been fully implemented since April 5th. It is designed to simplify the system with standard forms and quick response from lenders.

Google HAFA and you can read a lot of information. Not having completed any short sale with this system, it is too early to give a definitive report. The program is supposed to take home owners who were not successful with the HAMP (Home Affordable Modification Program) and give them the option of a short sale with pre-approved pricing and short lender response time. Another qualification is that the mortgage payment is supposed to be at least 31% of the gross household income.

Overall, the program looks to have promise. This looks to be a program that could really assist upside-down home owners who need to sell their home without having to trash their credit by not making any mortgage payments. The program caps a mortgage payment to 31% of gross income during the HAFA process.

Keep you posted as I see more of the program.