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-the-hafa-program/?gclid=CjwKEAiAgfymBRCEhpTR8NXpx1USJAAV0dQy8G6O2KOe2C-Bssafjs1QzLiaTlcUC7A4gdDc7CzXvBoCQ6vw_wcB

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...

Replies

L Brown 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...

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