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Friday, March 12, 2010

HAFA, HAMP, MHA . . . . Huh??

New Program to Streamline Short Sales Debuts April 5

HAMP: Home Affordable Modification Program
HAFA: Home Affordable Foreclosure Alternatives
RASS: Request for Approval of a Short Sale
SSA: Short Sale Agreement
MHA: Making Homes Affordable Program

As far as I know, "Huh" isn't an acronmyn for anything -- yet.

But all the other acronyms are for real.

Beginning April 5, the Obama administration is rolling out its latest program to help especially distressed housing markets.

Called HAFA, for "Home Affordable Foreclosure Alternatives," the (voluntary) program seeks to streamline short sales by dangling various financial carrots in front of lenders.

In exchange, the lenders agree to forego deficiency judgments (the difference between the mortgage balance and what they're actually re-paid), and to expedite their short sale response times.

From 120 Days to . . 10?

So, for example, instead of taking 3-4 months to respond to offers on short sale properties now, lenders participating in HAFA agree to respond in less than 10 days.

But what will their answer be?

One can imagine overwhelmed, bureaucratic banks, facing the new deadline, simply saying "no" when they're out of time to respond.

P.S.: 'HAFA . . . HAMP . . . Hut!" -- also sounds like Brett Favre at the line of scrimmage.

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