Banks have 10 days to respond to Short sale offer
HAFA (Home Affordable Loan Program) helps standardize the short sale and deed-in-lieu process by creating an alternative to foreclosures for homeowners unable to successfully modify their troubled mortgage under HAMP.
It also makes clear the timeframes by which servicers must respond to an offer on a short sale. The bank must respond to an offer in 10 days not 3-4 months!
The HAFA program will permit pre-approved short sale terms before a property is listed; prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval; release borrowers from future liability for the debt; and provide financial incentives to borrowers, servicers, and investors. Note these are California guidelines, for non Freddie and Fannie loans up to $729,500, hopefully Fannie and Freddie will adopt their own guidlines soon.
per C Assoc of Realtors
It also makes clear the timeframes by which servicers must respond to an offer on a short sale. The bank must respond to an offer in 10 days not 3-4 months!
The HAFA program will permit pre-approved short sale terms before a property is listed; prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval; release borrowers from future liability for the debt; and provide financial incentives to borrowers, servicers, and investors. Note these are California guidelines, for non Freddie and Fannie loans up to $729,500, hopefully Fannie and Freddie will adopt their own guidlines soon.
per C Assoc of Realtors
posted by Westside Investor's Eye at
2:50 PM
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