Back on Aug 22, I shared thoughts about government-initiated programs to address the foreclosure crisis in America. I focused on HAFA (Home Affordable Foreclosure Alternatives) , the program designed to “streamline” short sales thought a set of incentives (and qualifying standards.) The program was introduced in May of this year. I gave it a pretty good preliminary roasting, based on what I was hearing from agents at the time.
Since then, I’ve had a chance to talk with a large number of short sale agents in person at a national educational event. My question “Do you know anyone who has completed a HAFA short sale?” continues to get universal “no I don’t” replies. That’s significant. These agents do a lot of short sales (in the 50-150 per year range.)
Yesterday I came across an article from Wall Street Journal real estate beat reporter Nick Timiraos which said the Journal had found the number of competed HAFA short sales in the first 4 months of the program nationwide to be less than 400!
To give you some perspective, industry data provider CoreLogic puts the number of American homeowners “underwater” (owing more than their home is worth) at around 11 million. An additional 2.5 million have just 5% equity in their homes, or less.
At a recent masterminding session, representatives of major lenders said the HAFA program “is picking up speed” as the months roll along. Hmmmm.
I’m always searching for updated figures, however it appears today that HAFA may be going the route of the government’s overall mortgage modification push–nowhere fast.
If you’d like to learn about the program, one place you can do that is at Freddie Mac‘s site http://www.freddiemac.com/singlefamily/service/hafa.html
Check it out. See what you think.
Ed. Note–Disclaimer: Opinions expressed here are the author’s alone and do not represent the views of any company or legal entity in the real estate industry. All the information on this website is published in good faith and for general information purpose only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information on our website is strictly at your own risk. and we will not be liable for any losses and damages in connection with the use of our website.
From our website, you can visit other websites by following hyperlinks to these sites. While we strive to provide only links to useful and ethical websites, we have no control over the content and nature of these sites and the links to other websites do not imply a recommendation for all the content found on these sites. Please be also aware that when you leave our website, other sites may have different privacy policies and terms which are beyond our control.