That sounds more like a trial loan modification than it does a short sale. Loan mods fall under the HAFA program as well.

H.A.F.A. is a government program that helps homeowners who are behind on their mortgages find affordable alternatives to a foreclosure. Sometimes the answer is a short sale, other times it is a deed in lieu. A homeowner must first attempt to qualify for a loan modification. If they cannot meet the qualification for the loan modification then they can proceed under the guidelines of the program to pursue a short sale or deed in lieu. Under the program the homeowner qualifies for the $3000.00 relocation assistance. There is no higher payout available under H.A.F.A. They don't get the payout if they are successful in modifying the loan.

If the homeowner meets the H.A.F.A. qualification guidelines the lender will process everything under the guidelines laid out by that program. It is a faster and more streamlined process than a conventional loan modification or short sale. Many homeowners cannot meet the H.A.F.A. qualifications. They may still qualify for the same foreclosure alternatives, but the process is much slower and there is no $3000.00 parachute at the end. Not all loans fall under H.A.F.A. either. The loan must be Fannie Mae, Freddie Mac, or serviced by a lender who has signed onto the program (right now there are about 100 lenders).

Whenever I have a buyer interested in a property that is listed as a short sale I always ask if it is a H.A.F.A. approved short sale. That gives me an idea of how long it may take to get to closing. Under H.A.F.A. I've seen it done in less than 30 days, but usually in 45 to 60 days. If it's not H.A.F.A. approved it can take 6 months or more to get to closing.

http://www.bloomberg.com/news/2012-02-07...-mortgages.html

I emailed Central Mortgage to ask if they were referring to a HAFA or a HAMP, this was the email reply...

" This is a Freddie Mac and Freddie Mac requires trail payments on all HAFA short sales as well as the HAMP Modifications."

Go figure...the payments are far more than the HAFA $3000 payments. Absolutely NO incentive to do the govt sponsored SS program.

I told this to a colleague, he says he just started doing Co-op SS, through BOA. BOA, establishes the marketing price up front, then will pay the homeowner $1000 if they close within 120 days. If not, they will reduce the payment in steps until it is sold, or perhaps goes to foreclosure.