Short Sales/HAFA Relief Program
In simplified terms a short sale is when the mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. In doing so, the home owner sells the home for less than the outstanding balance of their loan.
When might a short sale be in your best interest? Lets say, for example, that you purchased your home when real estate values were much higher (likely between 2005-2007). Due to our slowed economy and struggling job market it's possible that you've lost your job or your hours at work may have been reduced, which would obviously affect your income and style of living. On top of that, you may have purchased your home with an adjustable rate mortgage and your payment has increased. Given the circumstances, it is extremely difficult or even impossible for you to pay your mortgage. What do you do? Consider a short sale.
In actuality, in a short sale situation, neither side is really doing the other a favor. A short sale is simply the most economical solution to a problem. It is a compromise between both parties. Banks will incur a smaller financial loss than foreclosing on the property or continued non-payment would entail... And home owners are able to mitigate damage to their credit history.
The number of homeowners who have taken advantage of short sales in the Ventura County area has increased dramatically over the last 2 years. It is actually a commonality in our marketplace. At Comfort Real Estate we have helped dozens of families successfully facilitate this process. We understand it is a delicate matter and we council our clients as such. We want our clients to feel at ease and protected through the process.
Lastly, please keep in mind that we are a hassle-free real estate firm. Our main objective is to inform and educate our clients. So, feel free to contact us at any time and experience our no-pressure approach.
HAFA Relief Program
Home Affordable Foreclosure Alternatives (HAFA) is a program designed to help homeowners avoid foreclosure by doing a short sale or deed-in-lieu of foreclosure. HAFA went into effect April 2010 and runs through December 31, 2012.
Guidelines from the U.S. Treasury, Fannie Mae, and Freddie Mac have helped streamline the short sale process. Homeowners may walk away from properties with fewer wounds and without having their dignity shredded. Benefits for homeowners include: 1) Greater certainty; 2) If a short sale doesn't happen, a homeowner can be considered for a deed-in-lieu of foreclosure where the property is returned to the lender; 3) Mandatory deficiency release that allows borrowers to walk away free and clear; and 4) Homeowners receive $3000 in moving expenses.
To inquire if you meet the HAFA eligibility criteria please call our office at 805-644-7800 or email us at Office@ComfortRES.com.
You may also visit www.efanniemae.com/sf/servicing/hafa/ or www.freddiemac.com/singlefamily/service/hafa.html for more information.
There may be tax ramifications with a short sale. Comfort Real Estate Services, Inc. recommends you consult your tax professional with any tax related questions or concerns you might have about the short sale process.
