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Short Sales: Friend or Foe

Short Sale or HAFA Short Sale?

Short Sales / HAFA


As night falls on the City, there is a sense of fear and panic that grips the inhabitants...the media has become so powerful that not even those of us that know the truth can save the day. However those of us that CAN save the day...those of us that are left as the dust settles and new horizons emerge...have we arrived too late, have we done enough?

Is this the start of a science fiction / Super-Hero story...or the state of the current Real Estate Market? Both? Sure.

Although the economy appears to be on the rebound, the media still is obsessed with negative news...and typically the facts are exaggerated to sell headlines. Regardless, no Real Estate Agent is entitled to wear a cape and swoop in to "save the day" without cooperation from homeowners, lenders and in many cases, the government. This has recently show signs of improvement with the HAFA Program (Home Affordable Foreclosure Alternatives).

Back in April 2011, I received my HAFA Certification and shortly afterwards, closed escrow on my first HAFA Short Sale. What is the difference between HAFA and a regular Short Sale?

For starters, HAFA can pre-approve the net proceeds required to approve the Short Sale. This is HUGE and directly impacts how long a Short Sale will take to reach approval, which is the biggest deterrent for buyers writing offers on Short Sale listings.

When a Short Sale is approved through HAFA, there is no negative reprocussion from the mortgage holder - meaning the bank cannot pursue deficiency judgements (typically on a first mortgage purchase money only - each situation is different).

One of the best incentives is HAFA typically provides "relocation assistance" to insolvent homeowners - the seller of the HAFA Short Sale that closed escrow in April 2011 received $3,000 in relocation assistance.

Most homeowners that have to sell their home via a Short Sale typically have to go through this process once, maybe twice in their lifetime. As your trusted Real Estate Advisor who has sold many Short Sales and is familiar with this process, every alternative to foreclosure should be investigated based on your unique circumstances. If indeed a Short Sale will be necessary to avoid having the home foreclosed, the HAFA Program should be the first option, if qualified.

Call today for a free analysis on your specific situation.