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Lender/Servicer Actions |
Borrower Actions | |
| Borrower Notification | Lender/Servicer must consider HAMP eligible borrower for HAFA within 30 calendar days after a borrower has no success with a loan modification or trial period plan (TPP). | |
| HAFA SSA | Lender/Servicer must notify the borrower of the short sale option in writing and give the borrower 14 calendar days to respond to the Short Sale Agreement (HAFA SSA). ------> | The borrower has 14 calendar days to sign and return the Short Sale Agreement (HAFA SSA). |
| SSA Termination | After signing the SSA, the lender/servicer may not increase the minimum net requirement until at least 120 calendar days have passed. | |
| Listing the Property | Borrower lists the property for sale using a licensed real estate agent | |
| Sales Contract |
Within 10 business days after the lender/servicer receives the Request for Approval for Short Sale (RASS), the servicer/lender must approve or deny the proposed sale. |
Within 3 business days of receiving a purchase offer, the borrower must submit a Request for Approval of Short Sale (RASS) to the lender/servicer. <----------
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| Escrow | The SSA gives the borrower at least 120 calendar days to sell the house. | |
| Close of Escrow | After the RASS has been approved, the lender/servicer cannot require the close of escrow to take place sooner than 45 calendar days. |
Copyright© 2011 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Permission is granted to C.A.R. members only to reprint and use this material for non-commercial purposes provided credit is given to the C.A.R. Legal Department. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R. Legal Department. All rights reserved.
The information contained herein is believed accurate as of April 11, 2011. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney. Revised by Sonia M. Younglove, Esq., Member Legal Services, Tel (213) 739-8282, Fax ( 213) 480-7724.
