Changes in HAFA possible soon
After meeting with investors, lenders, insurers, and other real estate professionals, The Treasury Department is considering making changes to the Home Affordable Foreclosure, or HAFA, program. Currently the program helps underwater sellers find positive alternatives to foreclosure in addition to providing incentives for the servicer and agent. The alternatives are either a short sale, or a deed in lieu of foreclosure, neither of which will affect the seller’s credit as negatively as a foreclosure would.
Many real estate investors are hoping the changes to the program will include eliminating or reducing the 90 day waiting period after sale before the property can be resold. At the current point, many investors are staying away from HAFA properties opting for more traditional short sales, and REO properties. Investors are a necessary cog in the real estate machine, recycling distressed properties and getting them ready for homeowners and traditional mortgages.
If the Treasury department does decide to reduce or eliminate the waiting period, it’s likely that real estate investors will be more interested in these properties and many will use hard money lenders to finance the purchase. Keep an eye out for the changes and check back often for more real estate investing news.
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