Home Affordable Foreclosure Alternatives (HAFA):  Lender and Homeowner Incentives:

U.S. Treasury to provide incentives to borrowers and lenders.  This includes the servicer to receive $1000 to cover administrative and processing costs for successful Short  Sale and $1000 toward the release of junior liens and best of all, $1500 for borrowers for relocation assistance.

HAFA Streamlined and Simplified Process:

HAFA allows borrowers to receive pre-approved short sale terms before listing the property (including the minimum acceptable net proceeds). Also, it requires all servicers participating in HAMP (Home Affordable Modification Program) to impliment HAFA in accordance with their own written policy, consistent with investor guidelines.

Lenders are to give 90 days to one year to market the property and are prohibited from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).  To see if your lender or servicer is a HAMP participatant, visit makinghomeaffordable.gov.

07/22/2010--I have seen with clients that Bank of America is now able to tell you if the loan is able to go through the HAFA program.  I so, the homeowner will have to provide updated financial information and the file will be moved to a third party handling the processing called Loan Resolution Corporation (AKA HAFA Short Sale Dept at 888-387-0523).