SellingNorthernNV

When the HAFA program became effective on April 5, 2010 for most lender, mortgage giants Fannie Mae and Freddie Mac announced that they would eventually be participating in the program, but only when they have put into place their own alternative guidelines for the program.

On June 1, 2010, Freddie Mac released their HAFA guidelines. All Freddie Mac services had to begin complying with these new guidelines and participate in the HAFA program effective August 1, 2010. Borrowers wanting to participate in the program may do so by executing a Form 1135 (short sale agreement), or a Form 1139 (Deed-in-lieu Agreement) anytime on or before December 31, 2012. However, servicers must first consider a borrower for HAMP, and exhaust any other home retention workout options before borrower is eligible for a HAFA short sale or Deed-in-lieu.

Eligibility requirements for the program

- Borrowers must be more than 60 days delinquent. (Under a non-Freddie Mac HAFA short sale, the borrower is not required to be delinquent)
- Borrower’s total Cash Reserves must be less than the greater of $5,000, or three times the current monthly payment

Upon acceptance into the program, the following financial parameters must apply:

- Each subordinate lien holder, in order of priority may be paid no more than 6% of the unpaid principal balance of their loan, until the $6,000 aggregate cap is reached, in exchange for release of the subordinate liens and satisfaction of the underlying debts.
- Freddie Mac will accept the short sale minimum acceptable net proceeds in satisfaction of the amount owed under the Note and release of its lien.
- No cash contributions or promissory notes will be requested or accepted from the Borrower by Freddie Mac. Subordinate lien holders must also agree to release all liens without promissory notes or contributions from the Borrower in order for the Borrower to be eligible for HAFA.

Seller Incentives

- Upon the successful closing of a HAFA Short Sale or Deed-in-Lieu, the borrower is entitled to receive $3,000 to assist with relocation expenses.

The forms that must be used for HAFA solution offered by Freddie Mac can be found on their web site: www.FreddieMac.com

If you have any questions about the program, you can also contact Freddie Mac at 1-800-FREDDIE

Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my website: www.SellingHomesinReno.com

Joshua Talayka
NAR designated: Short Sale & Foreclosure Resource
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Legal disclaimer: I am not an attorney. The information contained in this article/blog is intended to provide general information on the subject and not to provide any legal representation or legal advice in any means. You should not act upon this or any information without first seeking independent legal counsel.

Source of content: Freddie Mac Bulletin Number: 2010-12, release on June 1, 2010

Tags: Chase International, Deed-in-Lieu, Foreclosure, Freddie Mac, HAFA, Home Affordable Foreclosure Alternatives, Nevada, NV, Real Estate, reno, short sale, Talayka, www.sellinghomesinreno.com, www.sellingnorthernnv.com

This entry was posted by Josh Talayka on Saturday, February 19th, 2011 at 9:35 pm and is filed under Freddie Mac, HAFA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.