Under the federal Home Affordable Foreclosure Alternatives (HAFA) foreclosure help program, short sales are streamlined and incentives are offered to lenders and borrowers to encourage them to enter into short sale transactions. You can read more about the HAFA foreclosure help program here.
In addition to the financial incentives available under the HAFA program, a short sale is a great alternative to foreclosure as a short sale results in a higher sales price for the lender, is much less harmful to your credit score than a foreclosure and you can typically negotiate a waiver of the lender’s right to seek a deficiency judgment. Under HAFA, the lender is required to waive the right to seek a deficiency judgment.
If you’re thinking about a short sale, contact Richard today.
