US Treasury Announces new Home Affordable Foreclosure Alternatives (HAFA) Program with Short Sale Incentives
After more than a year of advocating a standardized short sale process to federal lawmakers, The Distressed Property Institute, LLC receives the U.S. Treasury’s announcement of short sale incentives, timelines and procedures.
“The HAFA program is an exciting step in the right direction for the entire country,” said Alex Charfen, CEO of the Institute. “Standardizing procedures will allow more homeowners and lenders to quickly reach a permanent solution.”
The HAFA Program, part of the Home Affordable Modification Program (HAMP), simplifies short sales procedures by setting limits on the time it takes lenders to respond, freeing borrowers from debt and capping claims of subordinate lien holders. Although the HAFA Program does not take effect until April 5, 2010, servicers may elect to implement HAFA in accordance with the Supplemental Directive prior to the launch date.
“We urge lenders to utilize these procedures immediately. Millions are facing fast-approaching foreclosure deadlines that will negatively effect borrowers, lenders and communities,” said Charfen. “The U.S. Treasury estimates that each foreclosure decreases the value of surrounding properties by 9 percent, therefore every foreclosure avoided helps stabilize communities and pull our economy toward a recovery.”
The Institute offers the Certified Distressed Property Expert® (CDPE) Designation. As the nation’s leading short sale training program, CDPE has educated more than 15,000 real estate professionals to assist distressed homeowners and work with lenders toward a quick and successful short sale transaction. A recent survey conducted by the Institute found CDPEs have decreased short sale processing time by an average of 50 percent.
“It has been suggested by countless experts that real estate will lead the economy out of the current crisis,” said Charfen. “It is the aim of HAFA and CDPEs nationwide to reduce the financial devastation for homeowners and communities that lay in the wake of every foreclosure. We’re excited to be making progress toward that goal.”
For more information about The Distressed Property Institute and the CDPE Designation, visit www.cdpe.com.