HAFA Revisions March 26 - Incentives & Real Estate Commission Enhancements

On March 26, 2010 (a week before the April 5th launch of the HAFA program) the Treasury Department issued revised HAFA short sale guidelines...  Read the press release and download the Consumer FAQs, HAMP Improvement Fact sheet

Another link to bookmark for Latest News / Press Releases for HAMP/HAFA:
https://www.hmpadmin.com/portal/news/press.html

Here are the highlights to the revision that impact the HAFA Program:

Enhancements to the Incentives portion of HAFA:

• Double relocation assistance payment for borrowers successfully completing foreclosure alternative to $3,000
• Increase payoffs to subordinate lien holders who agree to release borrowers from debt to facilitate greater use of foreclosure alternatives including short sales or deeds-in-lieu.
• The new payoff schedule allows servicers to increase the maximum payoff to subordinate lien holders to 6 percent of the outstanding loan balance and doubles from $1,000 to $2,000 the incentive reimbursement that is available to investors for subordinate lien payoffs, subject to an overall cap of $6,000. 
• Increase servicer incentive payments from $1,000 to $1,500 to increase use of foreclosure alternatives and encourage additional outreach to homeowners unable to complete a modification.
  

Revision to Real Estate Commission/Vendors Provision

• New language to clarify how a 3^rd party vendor will be paid, if applicable.  Old language vendor fee as a reduction in commission.  This language has option of vendor being paid from sales proceeds or by servicer outside of the transaction.

In paragraph 5c of the Short Sale Agreement form it now reads as follows:

Real Estate Commissions.  We will allow to be paid from sale proceeds, real estate commissions of _____ percent of the contract sales price, to be paid to the listing and selling brokers involved in the transaction. Neither you nor the buyer may receive a commission. Any commission that would otherwise be paid to you or the buyer must be reduced from the commission due on sale. [Optional text:]  Please note:  We have retained a vendor to assist your listing broker with the sale.  The vendor and your listing broker will work together on your behalf to facilitate the sale process. [Choose one and delete unnecessary text.]  [The vendor will be paid from sale proceeds [$ ________] OR [an amount equal to ____% of the sales price].] OR [The vendor will be paid by us outside of the sales transaction.]

 

HAFA/HAMP RESOURCES:

• Making Home Affordable – HAFA page with latest Program Guidelines; Borrowers Documents
  https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html 

• Making Home Affordable
  http://www.makinghomeaffordable.gov
  
  
• Home Affordable Admin Site for Servicers 
  https://www.hmpadmin.com/portal/index.html
  
  
• HAMP Participating Servicers
  http://www.makinghomeaffordable.gov/contact_servicer.html