Posted on Wednesday, January 27, 2010
Borrowers who default under a MHA HAMP mod are still eligible for a HAFA short sale or deed in lieu.
Supplemental Directive 09 09 provides guidelines for lenders. Servicers can't require a cash contrib, note, or any other contingency for the deficiency. Again, this is only a guidance, but for banks that got TARP funds it may be mandatory to waive the deficiency.
The directive also contemplates lenders providing preapproved short sale term prior to listing property, prohibits lenders from requiring real estate commission reductions and includes standard processes.
Financial incentives are provided for to borrower, lender, investor, servicers.
But to participate, must be primary lender on loan originated before 1/1/09, delinquent or default reasonably foreseeable, $729,750 cap for single family loans, monthly mortgage exceeding 31%.