April, 23 2012. Incredible news for Whittier Homeowners and our Whittier Short Sale Company! The Obama Administration announced major updates to the Home Affordable Foreclosure Alternative (HAFA) program in assisting all eligible homeowners in Whittier and surrounding areas avoid foreclosure through Short Sales.
This is great news for our Whittier Short Sale Company that helps many home owners avoid foreclosure and maintain their credit rating.
One of the biggest changes is going to benefit homeowners by allowing mortgage payments to exceed 31% of the homeowner’s gross monthly income. This is huge for Whittier homeowner’s looking to avoid foreclosure and save their credit rating as much as possible by allowing homeowner’s to stay current on their mortgage and still maintain eligibility for the Short Sale program.
The most dramatic change that is going to impact homeowners in the Whittier, Norwalk, Downey and Montebello area is that the Credit Bureau Reporting will either be Account Status Code 13 (paid or closed account/zero balance) or 65 (account paid in full/a foreclosure was started) per case scenario. This is a major win for homeowner’s that have gone through stressful nights of contemplating whether it is beneficial to Short Sale their home or just let it go through Foreclosure.
HAFA updates will go into effect on June 1, 2012, and will allow homeowners to seek assistance as soon as possible.
Other major changes to the HAFA program include:
- HAFA has removed the occupancy requirements that previously required homeowners to have lived in the property within the last 12 months.
- The cash incentives will be limited to properties occupied by an owner or tenant at the time of the short sale.
- Secondary lienholders now receive a larger payout to facilitate a Short Sale.
For more information on the Short Sale process or to watch a Short Sales versus Foreclosure Video Click Here or call Terry or Steve LaRoche; Whittier Short Sale Company LaRoche Team-Keller Williams Realty at 562-907-9900. Hablamos Espanol. Certified Distressed Property Experts.
