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 Jennie Blackburn, Realtaholic, CDPE, Certified HAFA Specialist, Dedicated To Helping Homeowners In Distress
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| What Is HAFA - Home Affordable Foreclosure Alternative? What Is A CHS - Certified HAFA Specialist? |
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In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010 and sunsets on December 31, 2012.
HAFA Provisions
- Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
- Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
- Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
- Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
- Uses standard processes, documents, and timeframes/deadlines.
- Provides the following financial incentives:
- $3,000 for borrower relocation assistance;
- $1,500 for servicers to cover administrative and processing costs;
- Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
- Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.
The Certified HAFA (Home Affordable Foreclosure Alternatives) Specialist (CHS) is verification that a REALTOR® has taken the initiative to become an educated and prepared advocate on the behalf of a homeowner in distress. Earned by completing a comprehensive curriculum, real estate agents with the CHS designation understand the current US distressed housing market and get an in depth review of the Treasury’s Home Affordable Foreclosure Alternatives (HAFA) program. Agents who have earned this designation are equipped with the expertise to help distressed property owners avoid foreclosure.
As a CHS designated REALTOR®, I am committed to helping people who are facing foreclosure by finding the right solution for their individual needs and seeing the issue resolved. Previously, short sales were a rarely accepted alternative by lenders, but in today's world they are increasingly becoming a viable option. Although more common in recent years, lender's still want the right deal with the right paperwork, and most real estate agents without the CHS designation do not know the specifics. The CHS course has taught me how to submit the proper documents to a variety of lenders as well as negotiation skills, allowing for quick resolve to a short sale.
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