Short Sale Blog

Here is the latest short sale news at Seattle Short Sales. We assist hundreds of Seattle area homeowners with short selling their home and avoiding foreclosure.

Recent HAFA Changes Bring it and Freddie Mac's "Standard Short Sale" Programs Closer

- Monday, March 17, 2014

Changes to the Home Affordable Foreclosure Alternatives (HAFA) Short Sale Program (HAFA), which took effect on February 1st this year, bring HAFA in line with the other main government short sale program, Freddie Mac’s “Standard Short Sale.”  Freddie’s Standard Short Sale guidelines apply to mortgage loans where the investor is one of the GSE’s: Freddie Mac or Fannie Mae. The HAFA program is for non-GSE mortgage loans (provided that the homeowner meets the HAFA eligibility requirements).

The aim of the HAFA changes is to make the whole short sale process faster and easier, by reducing the amount of paperwork and by providing guidelines for timing. The recent changes to HAFA are outlined in HAFA Supplemental Directive 12-07.  Key changes to HAFA are:

  • A Short Sale Agreement (SSA), signed and returned by the borrower, is no longer required. It is replaced by a Short Sale Notice (SSN), which does not require the borrower’s signature.
  • The Request for Approval of Short Sale (RASS) and Alternative Request for Approval of Short Sale (ARASS) are also eliminated, and are replaced by the Acknowledgement of Request of Short Sale (ARSS), which no longer requires the borrower’s signature.
  • In most cases, servicers are required to make a decision on the borrower’s HAFA request within 30 days of receiving all required documents.
  • Treasury now requires both the seller and the purchaser to sign an arm’s-length transaction agreement, and an affidavit that affirms that no money is being exchanged that does not appear on the HUD-1 form.
  • The property may not be resold at all for 30 days after closing of the HAFA short sale, and it may not be resold for more than 120% of the short sale purchase price for 90 days after the HAFA short sale.

The changes over the past six months, both to the Freddie Mac/Fannie Mae short sale guidelines and to  HAFA, mean that the short sale process (requirements, guidelines, timelines) are nearly identical for these government short sale programs, regardless of who the investor on the loan is.

Seattle Short Sales has a team of experienced and successful real estate specialists dedicated to working with distressed homeowners. We close, on average, 12% of all short sales per month in King County. In the last 24 months, we have negotiated over 756 short sale approvals, and discounted over $81 million of mortgage debt for distressed homeowners.

In addition to our short sales negotiators, our team includes dedicated professionals advising and advocating for homeowners in the fields of: loan modifications, bankruptcy, debt settlement and collection defense. As part of our service, we offer unlimited attorney and CPA consultations.

If you are a homeowner who is struggling to make ends meet, and would like to learn more about the options available to you, please go to: 

You can also contact Lambros Politis on Google+ or to find more up to date information on this subject, go to the Ark Law Group Blog. 

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