Las Vegas Short Sales Now Possible for Fannie Mae & Freddie Mac Mortgages

HAFA is the Home Affordable Foreclosure Alternatives program from the U.S. Treasury that became effective on April 5, 2010 designed to streamline and standardize the short sale process for qualified homeowners.  Read our 5 part series to learn more about the HAFA program.

HAFA excluded all Fannie Mae and Freddie Mac loans with the understanding that these GSEs  (Government Sponsored Enterprises) would publish their own guidelines at a later date.  Well that date has arrived… on June 1, 2010 both GSEs announced their guidelines for HAFA short sales.  These programs will allow homeowners with GSE loans to pursue a short sale or deed-in-lieu of foreclosure if they are unable to secure a modification under the government’s foreclosure prevention program.

Do you have a Fannie or Freddie mortgage? Find out by looking your loan up at this site: Fannie or Freddie Loan Lookup

Both programs are almost identical to the Treasury’s HAFA program for non-GSE mortgages.  The borrower must first be evaluated and denied for a Making Home Affordable Program (HAMP) workout plan. The GSE HAFA programs take effect Aug. 1, 2010, but servicers are allowed to use HAFA immediately.

Here are some minor differences from the Treasury HAFA program:

• Servicers are eligible for a $2,200 cash incentive for each completed short sale (it is $1,500 for non-GSE HAFA) and $1,500 for each completed deed-in-lieu.
• Freddie Mac Eligibility: 60 days late and have cash reserves less or $5,000 or 3 times their monthly mortgage. Borrowers may be in foreclosure, in pending litigation involving the mortgage, or in active bankruptcy.
• In addition, Freddie said it does not require or accept cash contributions or promissory notes from the borrower.

All the details of the programs can be found at the respective websites:

• Fannie Mae HAFA Guidelines
• Freddie Mac HAFA Guidelines

Are you a Las Vegas Homeowner facing a possible foreclosure or considering a Las Vegas short sale?

Call Kathryn at 702-348-7191 for your confidential, no obligation Las Vegas short sale consultation regarding your options – there are solutions and we are here to help you navigate the distressed property process.
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Related posts:

1. Fannie & Freddie Report 27% Increase in Short Sales and Deeds In Lieu
2. Fannie Mae’s New Rules Could Impact Las Vegas Short Sales
3. HAFA Series Part 5 – Can I Request a HAFA Short Sale without doing a HAMP modification?