Sellers Lining Up to Cash-In on HAFA Short Sale Program

April 19, 2010 - PRLog -- Lincoln, NE – The U.S. Treasury Department’s latest attempt to deal with the nation’s burgeoning foreclosure crisis officially took effect on April 5th.  The new HAFA program offers cash incentives to borrowers and mortgage servicing companies who utilize a short sale or deed-in-lieu transaction to avoid costly foreclosures.

Under the HAFA Directive, homeowners can receive $3,000 in relocation expenses upon closing of a successful short sale transaction.  The plan also provides for incentive payments to the mortgage servicing company, as well as to junior lien holders who agree to release their liens as part of the short sale process.

Prior to implementation of the HAFA guidelines sellers typically received no cash at closing, since most lenders were not willing to agree to accept a short payoff if they knew the borrower stood to profit from the transaction.  This made relocation plans difficult for sellers.  In addition to the cash incentives, the new HAFA plan also provides for uniform forms and other measures that are intended to streamline the short sale process.

According to New Paradigm Mediations, a national HAFA short sale and deed-in-lieu negotiation firm (http://NewParadigmMediations.com), homeowners are already lining up to take advantage of the new HAFA program.  “The HAFA program offers underwater borrowers a real, practical solution to avoid the foreclosure of their home, eliminate the mortgage debt, minimize the negative impact to their credit score, and avoid any liability for a deficiency,” said John Tebbetts, a company spokesperson.

Tebbetts further stated, “Under HAFA, if a lender accepts a short sale agreement, it must accept the short sale proceeds in full satisfaction of the mortgage debt.  This, coupled with the streamlined process and cash incentives, has caused us to be inundated with new clients.  We act as a liaison between the homeowner, real estate agent, mortgage servicer and others involved in the process to negotiate successful short sale and deed-in-lieu transactions at no charge to the seller, buyer or real estate agent.   And since the launch of HAFA, we have been expanding our operations on an almost daily basis.  The response has been quite astounding.”

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About New Paradigm Mediations: The nation's leading HAFA short sale and deed-in-lieu loss mitigation firm. New Paradigm Mediations works with homeowners, real estate agents, lenders and mortgage servicing companies nationwide to negotiate short sale and deed-in-lieu transactions as options to avoid foreclosure. The company provides services with no fee to the seller, buyer or real estate agent, and specializes in the new HAFA short sale and deed-in-lieu program. Call toll-free (877) 522-5005 or visit their website at http://NewParadigmMediations.com