Essex Mortgage Bank Explains the HAFA Loan Program and It's Effects on Mortgage Brokers

The HAFA short sale program is a very important program because it's a great alternative to foreclosures. This is much needed because of the current state of the housing market. Essex Mortgage Bank has seen the number of phone calls triple since this program went into effect last month from borrowers deciding that now was the best time if any to make a decision on whether they would refinance their current mortgage or voluntarily sign it over to the lender as part of the HAFA loan program.

Santa Rosa, CA, May 21, 2010 --( In 2009, the Treasury Department introduced the HAFA program for homeowners who were unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010—however there were some servicers who implemented it sooner the program sunsets on December 31, 2012.

1. Homeowners who qualify for a HAFA short sale are fully released from future liability for the first mortgage debt. This means that the mortgage lender cannot come after the homeowner at any future time for repayment of the original loan.

2. A HAFA short sale allows for a $3,000 relocation assistance payment for homeowners. That’s a one-time payment of up to $3,000 to help sellers with moving costs, rent security costs, etc.

3. Most major lenders are already on board with the new HAFA rules, including Citibank, Wells Fargo, Bank of America, Wachovia, Chase, Wamu, and the list continues to grow.

4. With HAFA, the short sale process has been standardized and streamlined so homeowners can expect a quicker outcome.

5. Homeowners can enlist the of their choice to help them through the HAFA process so they have an advocate. A Realtor can also help the homeowner determine if they qualify for a HAFA short sale and, if not, what other options are available to them.

Some of the primary qualifiers for HAFA, include:

-Must be the principal residence

-The home loan originated on or before January 1, 2009

-The homeowner is behind on their payments or soon will be

-The unpaid principal balance on the loan is no more than $729,750 for a single-family property

-The total monthly payment on the mortgage is more than 31% of the gross income of the borrower

For more information on this and many other government incentives, deductions, credits and down payment assistance please feel free to contact me on my toll free number 1-877-870-2676 or online

Jeffrey Martino Young
Essex Mortgage Bank
Santa Rosa,Ca, 95404

Essex Mortgage Bank
Jeffrey Martino Young