Freddie Mac and Fannie Mae recently announced a program similar to the government supported “Home Affordable Foreclosure Alternative” program. Although the programs are similar, you should be aware of some of the differences between each program. Most importantly, a Seller may not be eligible for HAFA if they have a Freddie Mac backed loan and a contract has been executed. As such, we recommend that if you plan to represent short sale sellers, that you contact a short sale negotiator at listing (or before you execute a contract with a buyer) to determine the HAFA requirements for that particular lender. There is a matrix comparing the non-gse, Fannie Mae, and Freddie Mac guidelines. If you would like this matrix or have any questions regarding the differences, please call Berlin Patten at 941-954-9991.
Written and posted by Karen Gagliardi, Business Development Coordinator for Berlin Patten, PLLC.