Not to say HAFA is a complete failure…there are a select group of homeowners that have made it through the “hoops” of the treasury guidelines and have been able to wait out the long approval process to finally be approved.

From  first hand experience with our own clients… EVERY homeowner that has been approved for HAFA has declined the ultimate offer!  Here are a few reasons:

• Homeowner to make mortgage payments during the duration of the 120 Day contract to sell the home with HAFA guidelines.
• Pre Approved Sales price is not market value, typically 5 yo 10% above true sales in the area.
• 120 Days to market and sell the property, if home does not sell investor can demand the homeowner sign over a deed in lieu…that is equal to a foreclosure on your credit!  Just a voluntary foreclosure!  Saving the investor the money spending legal fees to foreclose

This blog is for all homeowners that are contemplating a short sale, no matter if it’s strategic or a financial hardship…and would like to find out more about all of the programs that are available to you to avoid a foreclosure.

Bank of America, J.P. Morgan Chase, Wells Fargo and Citi Bank have all developed their own version of  the HAFA Short Sale, but without the treasury restrictions.  In most cases a standard short sale will allow you to be released from recourse from lenders, you will need to work with an experienced short sale agent that will negotiate those terms for you.  As well as money at close of escrow to help in relocation costs, this amount can be up to $3000.

If your considering a strategic short sale, meaning you’ve made a business decision that your home in now a very bad investment and going to send you into the poor house if you don’t get rid of it….just like you would if you were loosing money on specific stocks or other investments.

If you would like to talk to us about your options, give us a call.  We’ve been through the stress of making that life changing decision of letting go of the dream of owning our home…well, 3 years later, I can tell you that it’s been a blessing that we accepted the reality of our home not being our “Dream” any longer…It had become our “Nightmare”.