COSTS AND FEES FOR HAFA
No borrower will be charged any direct costs or administrative processing fees in connection with HAFA. The servicer must pay all out-of-pocket expenses, including but not limited to notary fees, document recording fees, release fees, title costs, property valuation fees, credit report fees, or other allowable and documented expenses.
In the event the short sale or deed-in-lieu is not completed, the servicer may add these costs to the outstanding debt in accordance with borrower’s mortgage documents and applicable laws.
Servicers may require borrowers to waive reimbursement of any remaining escrow, buy down funds, or prepaid items. Servicers may also assign any insurance proceeds to the investor, if applicable. Those funds will not be applied to reduce the total net proceeds from the sale.
In the event that one or more borrowers are unable to sign the paperwork in person, such as illness or military deployment, the borrower(s) may be responsible for costs associated with paper or electronic transmission of their signature.