Short sales simpler and more profitable for everyone

 Short sales and deed-in-lieu arrangements will soon be simpler and more profitable for everyone involved in them, thanks to a new program from the U.S. Department of the Treasury. The program, nicknamed HAFA (Home Affordable Foreclosure Alternatives Program), is part of the Home Affordable Mortgage Program, and greatly benefits borrowers that are not eligible for other elements of that program.

HAFA will allow short sale terms to be pre-approved before properties are listed, and releases the borrowers in such deals from future liabilities in relation to the debt. HAFA also regulates servicers in the deals, preventing real estate commissions taken from a listing agreement from being charged as a short sale pre-approval condition (up to a 6% commission). All servicers are required to comply with HAFA if they're HAMP participators.

The program is outlined in nearly 50 pages of forms and guidelines. However, borrowers need to apply for HAFA within 30 days of becoming ineligible for other parts of the program, and borrowers that are eligible for HAMP may still benefit from HAFA. Time is certainly an issue with the HAFA program, and this means that in order to benefit from the program and to make the most of the government incentives, real estate agents need a good strategy for creating profitable short sales.

Lotus Realty Group can help to educate realtors and realty organizations on the offerings of HAMP, obtain placement on bank approved lists, and attract clients that qualify for the program. Most importantly, help you close short sales.

For more information, please contact Cari  Drolet at Lotus Realty Group via email at cari@lotusrealtygroup.com or phone at 760-707-3072