Austin, TX (PRWEB) December 21, 2012
In an nationwide broadcast from the Charfen Institute studios in Austin, Texas, Laurie Maggiano, Director of Policy at the Homeownership Preservation Office at the Department of Treasury, sat down with Alex Charfen, co-founder and CEO of the Charfen Institute and author of the Certified Distressed Property Expert Designation, and outlined critical changes in the Home Affordable Foreclosure Alternatives (HAFA) program.
Maggiano stated that the changes are part of an effort to further systematize and streamline the short sale process for servicers nationwide. Over time we got a lot of feedback, we took that feedback very seriously, and we continued to refine the program and tried to simplify it as we went along, said Maggiano on the broadcast. We were able to get to a place where truly now there is a single short sale program for borrowers with financial hardship.
The changes, which go into effect on Feb. 1, 2013, are designed to further clarify and expedite HAFA short sales to make it easier for distressed homeowners to make their way through the process. Among the changes are streamlined documentation, faster timelines, greater flexibility to re-sell a HAFA short sale, and a pre-determined hardship of certain borrowers.
Previously, to be eligible for HAFA homeowners had to have a documented financial hardship establishing delinquency or imminent danger of default on their mortgage. While HAFA eligibility still requires a financial hardship on the part of the borrower, homeowners who are more than 90 days late on their mortgage and have a FICO score of less than 620 will now be considered to have a pre-determined hardship, making them eligible to participate in the HAFA program without a hardship affidavit. The affidavit is required to complete a HAFA short sale, however.
HAFA has been one of the most effective government programs in helping distressed homeowners find solutions to their mortgage problems, said Alex Charfen. Really, it has served as a modeling program for the rest of the industry as to how to effectively execute short sales. We were happy to help use our connection with real estate agents to help Laurie spread the word about these changes.
About the Charfen Institute:
The Charfen Institute educates and trains real estate professionals and small business owners to find opportunities in chaos either by providing solutions to the foreclosure crisis or empowering entrepreneurs with strategies to embrace their companies full potential. The company produces more than 300 educational events each year through various divisions, including: the Certified Distressed Property Expert