In an announcement today, the White House announced some big changes / improvements to the HAFA plan. The changes are vast and in some cases a huge improvement upon the earlier HAFA version. Key points include:
- Principal Reductions for Underwater Mortgages
- FHA Refinancing for Underwater Mortgages
- Assistance for those who are Unemployed
- HAFA Enhancements
- Servicer incentives on short sales and deeds-in-lieu from $1,000 to $1,500
- A doubled payout to 2nd lien holders from the previous 3% to a 6% cap
- Servicer incentives for short sales or deeds-in-lieu have also doubled from $1,000 to $2,000
- Servicers are required to "evaluate" Borrower's who have missed "at least" two payments and servicers are not allowed to initiate foreclosure proceedings until it is determined that borrower's are ineligible for HAMP.
One of the best explanations of these updates as well as great links to HAFA related material comes from Carrie Bay of DSNews. Click here for full story.
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