New Rules and Regulations for short Sale home
The Home Affordable Foreclosure Alternative (HAFA) program has introduced new home short sale rule in which borrowers must be approved for short sales before
HAFA is offered to borrowers who have previously applied to HAMP, but either did not meet the requirements or failed to benefit from it. The Home Affordable Foreclosure Alternative (HAFA) program put into effect a new short sale rule in which borrowers must be approved for short sales before putting their home on the market. This greatly lowers the pressure in most banks, as they often have to deal with borrowers who would be better off with a loan modification. The reduced pressure allows them to cater more effectively to those who do qualify for the home short sale process.
Borrowers are now required to present all their documents to the bank upon application. Earlier HAFA rules allowed them to get the home short sale process started while still gathering their documents. But many were unable to complete them and ended up going to foreclosure instead. New HAFA regulations avoid this problem by having sellers provide all the paperwork up front, so the home short sale process can proceed more smoothly.
Preset Time Frames
Under HAFA, lenders must write a home short sale offer to borrowers who fail or are found ineligible for loan modification within 30 days. The borrower must then reply within 14 days. Offers must be forwarded to lenders within three days, and lenders must either approve or reject them within ten days. This ensures that none of the parties causes unnecessary delays, and forces banks to pursue the home short sale process instead of going straight to foreclosure.
Another thing that makes the HAFA home short sale different is that banks and borrowers now have to agree on the price before the home is listed. Previously, the home short sale process allowed sellers and their agents to set their price without informing the lender. But since banks have the last word on home short sale pricing, it often took a lot of negotiation between banks and buyers. By approving the price before a home hits the market, the time between offer and closing is much shorter. "
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ABOUT THE AUTHOR
Author is a professional short sale/ real estate agent who completely understood the Short Sale process and helps people sell or buy their properties. He provides information for helping people to avoid foreclosure. In the present article he wrote about new rules and regulations for short sale home. To know more about home short sale rules and regulations visit:- http://www.homeshortsales.org