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Showing posts from June, 2010

Lake of the Ozarks Real Estate News - GSEs Adopt HAFA Guidelines

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GSEs Adopt HAFA Guidelines

Fannie Mae and Freddie Mac are now allowing struggling homeowners with loans backed by the government-sponsored enterprises, or GSEs, to sell their properties through a Short Sale or deed-in-lieu of foreclosure if they can't get a loan modification, officials announced this week.

GSE loans were excluded from the Treasury's Home Affordable Foreclosure Alternatives (HAFA) program's guidelines, which went into effect in April. HAFA, which streamlines the Short Sale process, was created to help both homeowners and banks avoid foreclosure.

To be eligible for HAFA, Fannie and Freddie loans must first qualify for and enroll in the Home Affordable Modification Program (HAMP). GSE loans are eligible for HAFA only after HAMP and other home-retention options have failed.

Freddie Mac and Fannie Mae servicers must comply with the new HAFA procedures by Aug. 1; the program expires Dec. 31, 2012.

Here's an excerpt from a DSNews article detailing the new GSE proc…