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A Short Sale is Not the End! You Can Stay in Your Home!

Can you short sale your home and stay?

Yes, thanks to changes in HAFA!

In March of 2011, the government program known as “Making Homes Affordable (MHA)”, made a change to their book in the “Home Affordable Foreclosure Alternatives (HAFA)” section. This change became effective in June of 2011.

Up until June of 2011, lenders would require an “arms length” transaction, meaning that you had to move out of the home after the short sale. Now, the new supplemental directive put out by the US Treasury to the HAFA document allows the borrower to remain in the home. The regulations are specific, you need to sell the home to a non-profit organization who then can lease it back to you or even resell it back to you at today’s value.

With the link the supplemental directive at the end of this letter, you will find that page 1 explains the date it became in effect. On page 8, “Sales to Non-Profit Housing Organizations” section describe the change and how it works.

This is a huge change. Homeowners can now keep their home instead of the standard shorts sale, where they get nothing from it or, even worse, they end up with a foreclosure. All the homeowner needs is the non-profit organization to buy it. We have the organization to do just that.

The non-profit we work with will buy the home from you and lease it back for up to three years. You can repurchase it at current value any time in those three years. This sale is handled by a real estate agent/broker that is trained in this type of short sale.

Link to the MHA Supplemental document on the HAFA changes:

Supplemental Document 11-02

(Note: Selecting this link will redirect you to another web site.)