On Dec 28, 2010, the Treasury Department changed the rules to make HAFA (Home Affordable Foreclosure Alternatives) short sales easier!

Here are the primary changes to HAFA:

• Those seeking a short sale must get an answer within 30 days
• Servicers are no longer required to verify a borrower's financial information
• Servicers are no longer required to determine if the debt-to-income exceeds 31%
• Second lien holders no longer must accept 6% of the unpaid balance

Overall, these changes should help expedite short sales, which is good news for home owners, realtors, investors and ultimately the banks. Hopefully this will eliminate this fraud that was exposed last year.
This Supplemental Directive is effective February 1, 2011.