What Does The HAFA Government Program Mean to the Short Sale Process?

April 5, 2010 the HAFA program starts. This program has some good points. The biggest positive is that this program will help standardize the short sale process between banks.

Like the HAMP program for modifications, there will be stumbling through the start up. Major Banks are trying to create departments to work the short sales and or use technology used on REO's to better monitor communication of the process. These are good steps and hopefully will reduce the time to process a short sale.

The banks that have second mortgages are a major issue with the new plan. The plan is trying to limit the settlement to all seconds to a maximum of $3000. This limit may affect short sales that have second mortgage without incentive increasing to the settlement amount to the second mortgage holders.

Please review what the American Bankers Magazine says:

http://www.americanbanker.com/issues/175_51/short-sale-plan-1016045-1.html