Subscribe
1-888-746-7820

Bank of America – HAFA Short Sale Update

Home Affordable Foreclosure Alternatives (HAFA) Short Sale Update

Bank of America released today an update to the HAFA Supplemental Directive 12-02. These HAFA changes took effect June 1, 2012 and impacts short sales with loans from non-government-sponsored enterprises in which the homeowner is eligible for the HAFA program.

Bank of America HAFA key enhancements include:

  • Time frame extended: The program has been extended to Dec. 31, 2013. The HAFA short sale or deed in lieu of foreclosure can be initiated up to Dec. 31, 2013; however, the transaction must have a closing date on or before Sept. 30, 2014.
  • Eligibility updated: Occupancy requirements for HAFA eligibility have been removed; however, the property can’t be owned or secured by a business entity.
  • The second lien maximum has been increased from $6,000 to $8,500.
  • HAFA relocation assistance of $3,000 will be paid only to the primary resident (borrower or occupant) of the property at time the agreement is executed. The resident must vacate upon closing. Vacant properties are not eligible for HAFA relocation assistance.
  • Nonborrowers (tenant, legal dependent, parent or grandparent) can now qualify if occupying the property and must vacate upon closing.

Additional information:

  • This policy is effective June 1, 2012, for new HAFA-eligible short sales initiated. It also applies to current HAFA short sales prior to closing.
  • Tenants will be eligible only for the $3,000. Any money available from additional incentive payout opportunities must be paid to the borrower. The HUD-1 must reflect the breakdown.
  • The borrower will be responsible for requesting and managing the tenant relocation assistance, including submitting required proof of occupancy and other documentation.

 

Bank of America, N.A. Member FDIC.  Equal Housing Lender
© 2012 Bank of America Corporation. All rights reserved.

Leave a Reply

Latest Posts

  • Leon Cook
    Leon Cook
    As the CEO of Short Sale Experts, Inc. Leon and his staff have...
  • Sara Ard
    Sara Ard
    As the COO of Sale Experts, Inc. Sara and her negotiations team have...

Address

925 B Street Suite 102
San Diego CA, 92101
Phone: (888) 746-7820
Fax: (888) 597-2040
Website: http://shortsaleexpert.com
Email: info@shortsaleexpert.com

Short Sale Expert

Encore Real Estate Group
CA DRE Lic. #01883210

Broker: Troy Anthony Huerta
Agent: Leon Cook
CA DRE Lic: #01028204
CA DRE Lic: #01866021

925 B Street Suite 102
San Diego, CA 92101

Phone: 1-888-746-7820
info@ShortSaleExpert.com