Sellers: How the HAFA Program can help with Short Sales
Posted by Mike Ciucci on
The Home Affordable Foreclosure Alternatives (HAFA) Program is a program designed for sellers that are upside down in their house. This program is for those folks that have contemplated selling their home as a “Short Sale” rather than allowing for foreclosure. So how does it work?
The benefit of this HAFA program is that you would no longer be responsible for the difference between what you owe on your mortgage and the amount that your home sells for. You see, in South Carolina, most banks would order a deficiency judgment against the borrower for the difference in what the home sells for, and what is owed. The HAFA program would be the contrary. Sellers would also receive $3,000 at closing as an incentive to selling as a short sale, as opposed to…
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Just a quick reminder to all of you buyers out there trying to get a steal on the next short sale deal in Charleston. A lot of the time, there are wonderful deals (read in: steals) that can be made when purchasing real estate via short sales in Charleston. Most of the buyers I’ve encountered fully understand that a short sale is basically a seller that is behind on mortgage payments. They can be 2 months behind, or 7 or more months behind in their monthly mortgage payments. A short sale is when a seller is trying to get the bank to accept a loss on the property, or for the bank to accept a contract for an amount that is less than what the seller owes on the note. The seller basically owes more than the property is worth, or is in financial trouble and…