Making Home Affordable Program – Program Updates

The first paragraph of Section 6.2.5 of Chapter IV is amended as follows:

A borrower who occupies the property as a principal residence and is required to vacate as a condition of the HAFA short sale or DIL may be eligible to receive 10,000 in relocation assistance at closing. In addition, a borrower requesting a HAFA short sale or DIL with respect to a rental property (as defined in Section 1.1.3 of Chapter II) may be able to claim relocation assistance for a tenant that occupies the rental property as a principal residence, or the borrower’s legal dependent, parent or grandparent that occupies the rental property as a principal residence with no rent charged or collected, if such parties are required to vacate as a condition of the HAFA Supplemental Directive 14-04 Page A-3 short sale or DIL. In the case of a rental property occupied by a tenant or other non-borrower occupant, the entire $3,00010,000 in HAFA relocation assistance must be paid to the tenant or other non-borrower occupant (assuming the conditions of such payment are satisfied), must be reflected on the HUD-1, and may not be reduced to pay any costs and expenses of the tenant or other non-borrower occupant. No portion of the 10,000 may be retained by a borrower. A borrower may exercise his or her discretion in allocating the incentive among tenants or other nonborrower occupants who otherwise satisfy the conditions of payment. Servicers must notify borrowers of the availability of relocation assistance.

Resource: https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/sd1404.pdf

 

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