About the HAFA $10,000 relo payment after Feb 2015

1) WHO pays the up to $10,000 in relo fees? fannie mae? the bank?  or? This makes a difference
when trying to negotiate a tight deal.

2) Is there a 'minimum net' rule in order to qualify?


2) Is it true Freddie Mac no longer participates in HAFA? That is what I was told by Freddie Mac
escalation dept. rep last week.

Here's some of the HAFA relocation qualification guidelines I found on a HAFA-related site:

  • Your home is worth less than what you owe to the lender
  • Your current mortgage was taken out on or before January 1, 2009
  • You are experiencing a hardship and cannot afford your current monthly payment
  • The home is your current principle residence OR the property has been rented out or vacant for less than 12 months
  • You are more than 60 days late on your mortgage payment
  • You have cash reserves less than $5,000 or less than three times the current mortgage payment
  • You are not less than 60 days from a foreclosure sale date

    Here is the source:
    http://www.california-shortsale.com/common-questions/do-you-offer-t...

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Permalink Reply by L Brown on February 14, 2015 at 8:59am

I also found the following info in a Calif. Association of Realtor article indicating not only does the money come from the government, but the lenders and servicers are given a $1,500 financial incentive for doing HAFA:
Note: this article written before the 02/2015 relocation expense increase from $3,000 to $10,000:

"The government incentives under HAFA are as follows:

  • $3,000 for relocation expenses to borrower, tenant or non-borrower occupant who occupies property as principal residence and is required to vacate as a condition of the HAFA short sale. $3000 is the total incentive no matter how many occupants.
  • $1,500 to lender/servicer to cover administrative and processing costs
  • $2 reimbursement to investor for every $3 paid to extinguish junior liens, up to $5,000 maximum."

    Source: http://www.car.org/legal/foreclosure-short-sale-folder/hafa-short-s...
Permalink Reply by Kevin - Greenville, SC on February 21, 2015 at 4:00pm

According to Treasury the Relocation Assistance should not affect the net as it's 100% reimbursed by the Treasury Department.

Permalink Reply by L Brown on February 21, 2015 at 7:03pm

Great news for borrowers, thanks Kevin, as always

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