A Short Sale is a Real Estate transaction in which the proceeds from the sale do not cover the balance owed on the loan/loans on the property. The lender agrees to accept a discounted payoff on the loan, allowing the property to close escrow. All proceeds from the sale are turned over to the lender. The main factor contributing to the lenders decision to agree to a short is the homeowners financial situation.
Lenders prefer a short sale over foreclosure as they are able to reduce the carrying costs associated with a foreclosure, and minimize the overall financial loss. This process also helps maintain the overall home values in the community.
If you can’t afford your mortgage payment and it’s time for you to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a short sale or a Deed-in-Lieu (DIL) of foreclosure. In a short sale, the mortgage company lets you sell your house for an amount that falls “short” of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.
As an incentive for homeowners to pursue a short sale, many lenders are offering cash incentives. The U.S. Treasury’s Home Affordable Foreclosure Alternatives (HAFA) Program also offer cash incentives to qualified homeowner and has help to streamline the Short Sale Process.
HAFA offers benefits that make the transition as favorable as possible:
You can get free advice from HUD-approved housing counselors and licensed real estate professionals.
Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price.
HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
When you close, HAFA provides $3,000 in relocation assistance.
A qualified Realtor ® who had been certified in distress properties (short sales and foreclosures) can serve as a liaison to the resources available to homeowners in various stages of financial distress.
What is a Short Sale?
A Short Sale is a Real Estate transaction in which the proceeds from the sale do not cover the balance owed on the loan/loans on the property. The lender agrees to accept a discounted payoff on the loan, allowing the property to close escrow. All proceeds from the sale are turned over to the lender. The main factor contributing to the lenders decision to agree to a short is the homeowners financial situation.
Lenders prefer a short sale over foreclosure as they are able to reduce the carrying costs associated with a foreclosure, and minimize the overall financial loss. This process also helps maintain the overall home values in the community.
If you can’t afford your mortgage payment and it’s time for you to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a short sale or a Deed-in-Lieu (DIL) of foreclosure. In a short sale, the mortgage company lets you sell your house for an amount that falls “short” of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.
As an incentive for homeowners to pursue a short sale, many lenders are offering cash incentives. The U.S. Treasury’s Home Affordable Foreclosure Alternatives (HAFA) Program also offer cash incentives to qualified homeowner and has help to streamline the Short Sale Process.
HAFA offers benefits that make the transition as favorable as possible:
A qualified Realtor ® who had been certified in distress properties (short sales and foreclosures) can serve as a liaison to the resources available to homeowners in various stages of financial distress.
Find out if a Short Sale is right for you: