Are Short Sales Really Long Sales?

The joke about short sales is that they’re far from short – everyone has heard a horror story about how long and drawn out the process can be.  The good news, as Realty Times reported, is that at the end of 2009 the US Treasury Department stepped in with the Home Affordable Foreclosure Alternatives Program (HAFA) to standardize the short sale process.  Prior to this program, all parties were not playing by the same rules, which led to lengthy transactions and uncommon procedures.HAFA works with lenders and servicers who are part of the government’s Home Affordable Modification Program (HAMP). HAMP basically gives qualified distressed homeowners a chance to adjust their mortgage payment in hopes of preventing foreclosure.  But what if a homeowner doesn’t qualify?  HAFA is the program that may be able to help these people as well as those who still can’t pay HAMP’s modified payments.  Loans up to the amount of $729,750 are covered, however Freddie Mac and Fannie Mae loans do not qualify.If a homeowner is approved for a HAFA short sale, a minimum price is determined for the home and a Short Sale Agreement (SSA) is recorded.  The SSA is in effect for at least 120 days and during this time no foreclosure may occur and the property must be actively listed and marketed by a licensed real estate professional.We’ve had great success in marketing short sales because of the active role we take in promoting ALL of our properties.  Short sale or not, our goal is to service our clients.  The HAFA program will certainly add to the efficiency of the short process so that all the agents, lenders and short sales servicers are on the same page.   It’s time for the short sale to live up to its name.