The Fiscal Cliff was narrowly averted, although there are still some headwinds in front of us. With that comes an extension of the Mortgage Forgiveness Act through 2013. While that doesn't benefit all states, it should help the national housing market stay on a course of recovery. However, there are also some major changes coming with the HOME AFFORDABLE FORECLOSURE ALTERNATIVES (HAFA) program. Here are the changes.
1. Servicers are now required to respond within 30 days rather than 45 days.
2. Pre-determined hardship (90+ days delinquent and FICO below 620) with affidavit required. Borrowers who are 90 days or more delinquent and have a FICO score that is less than 620 will be deemed to have a “pre-determined” hardship. Servicers do not need