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Friday, December 31, 2010

HAFA UPDATE

HAFA UPDATE, Release of Subordinate Liens. This is a much needed change.

Prior to this update if you had a 2nd loan on your home HAFA would pay the 2nd lender 6% of the balance owed up to a maximum payment of $6,000.00 This formula would not work well on loan balances under $100,000 

Example - Seller has a 2nd loan of $50,000 and this lender will not release the lien unless they are paid 10% of the amount owed. 10% of $50,000 = $5,000

  1. under the old rules HAFA will only pay $3,000.00 (6% of $50,000) and the Short Sale woud fail.
  2. under the new updated rules HAFA can now pay the $5,000.00 needed, Short Sale Approved!
Below is the part of the verbiage of this update. 

 

 By February 1, 2011, servicers must make appropriate 

updates, but may do so immediately. HAFA Update

 

 

Release of Subordinate Liens

Subordinate mortgage/lien holders will continue to  be paid in order of priority as set forth in 

Section 6.2.4.2 of Chapter IV of the Handbook.  However, servicers are no longer limited by the 

six percent cap with respect to payments to each subordinate mortgage/lien holder.  The servicer, 

on behalf of the investor, shall determine the  amount or percentage of the unpaid principal 

balance of the lien that will be paid to each subordinate mortgage/lien holder until the $6,000 

aggregate cap is reached.  Each servicer must include in its HAFA Policy how subordinate 

mortgage/lien holders will be paid.  Investors continue to be eligible for incentive reimbursement 

for up to one-third  of the cost to extinguish subordinate liens as  described in Section 12.3 

 

 

The complete update is available as a HAFA Update link on my Short Sale site.

 

 

 

Temecula Short Sale Agent, Cyber Sid at your service,Short Sale QR Code

Sidney Kutchuk  AKA...Cyber Sid
      SHORT SALE AGENT    www.aShortSale.com
   
CALL ME, 951.215-6745 cell

 41720 Winchester Rd #I  Temecula Calif. 92590      951.676-4663    DRE# 01156692 

Posted via email from Temecula Short Sale Specialist