Monday, January 17, 2011

New HAFA Short Sale rules for 2/1/11

Treasury has released amendments to the HAFA program effective February 1, 2011. To review the amendments, click here.

Most interestingly, Front-End Debt-to-Income Ratio analysis is no longer required and new rules for vacant properties are provided.

Now: A property vacant for less than 1 year can be considered, which is a lot more time than the 90 days that was previously allowed. Also, the applicant no longer needs to justify their relocation based upon employment requirements.

This new vacant property rule brings the program close to reality where many distressed homeowners simply leave their home when times get tough. Its a great move by Treasury because now more abandoned homes can be brought back to life with new homeowners.

2 comments:

  1. Good thinking. What are your thoughts on expansion on a global scale? People obviously get frustrated when it begins to affect them locally. I’ll check back to see what you have to say.

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  2. Now you will probably not hear a real estate agent or broker tell you that you shouldn’t buy a short sale. The reason for that is because they are the ones that make money on the short sale not the seller or the buyer. Below we will list some reasons as to why you should not buy a short sale whether you are a first time home buyer or not.

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