Real Estate Information Archive


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The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales or deeds-in-lieu of foreclosure.

New policies effective: June 1, 2012
Retroactivity: Servicers not required to, but may reevaluate borrowers formerly ineligible.
Source: United States Treasury Department – Expanding our Efforts to Help More Homeowners and Strengthen Hard-hit Communities.


How to Qualify for a Short Sale

by John Riggins

Kapolei Real Estate: How to Qualify for a Short Sale

July 20th, 2009 John Riggins Posted in KAPOLEI REAL ESTATE NEWS, Kapolei real estate, oahu, short sales No Comments »

There are three main qualifications that a seller must have to qualify for a short sale: 1) Financial Hardship, 2) Monthly Shortfall, 3) Insolvency.  If you are hoping to qualify for a short sale with your Kapolei real estate keep reading.

  1. Financial Harship means that you have proof of why you are having financial difficulties. i.e. you lost your job, your business failed or you have too much debt.  Basically circumstances have changed from the day you signed your mortgage to today.
  2. Monthly Shortfall is the verification that you cannot afford your current mortgage.  A homeowner shows their “shortfall” on a sheet they fill out which is provided by their lender.  In a nutshell this is simple math: Total Monthly Income - Total Monthly Expenses = Monthly Shortfall.  If you do not have a current monthly shortfall but foresee one coming due to a layoff or mortgage increase you may still qualify if the issue is verifiable.
  3. Insolvency is when you do not have the means to pay down your mortgage.  Insolvency is when you owe more than you have in cash.  Having money in the bank is one thing, everyone needs to pay their bills and put food on the table and you do not have to be completely broke.  The mortagge company simply wants to see that you will be unable to pay your mortgage as time goes on.

For information on short sales on the island of Oahu contact John Riggins today.  John Riggins is one of only four Certified Distressed Property Experts (CDPE) in Hawaii and can help you with all of your real estate concerns.  If you are looking to purchase a Kapolei short sale call John Riggins today.

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Contact Information

Photo of John Riggins REALTOR RB11175 Real Estate
John Riggins REALTOR RB11175
John Riggins Real Estate
1003 Bishop Street, suite 2700
Honolulu HI 96813
Fax: 888.369.3210