Major HAFA Changes for Massachusetts Short Sale Sellers of Non-GSE mortgages
This is big change to the HAFA program itself in case you didn’t hear about it yet. These two very important changes will affect all NON-GSE mortgages (not Freddie, Fannie, FHA, or government backed programs). Massachusetts short sale negotiators may be rejoicing everywhere.
The first change is related to the seller incentive. The current incentive is $3000. A seller MOVING incentive is an incentive to a borrower who still occupies the property. It also extends to tenants. If the property is STILL occupied this amount will be going up to $10,000. That’s a pretty big leap.
The second change is related to the subordinate liens being paid off. As it stands, subordinate liens are allowed up to $8,500 to release their lien against the property. The current changes allow subordinate liens to be paid up to $12,000. This could all be for one lien or several.
These changes are being implemented starting for any file closed after February 1, 2015.
What does this mean for HAFA short sales? My gut says higher priced short sales to meet the required NET for the servicers, but only time will tell.