9990 Richmond Avenue
Suite 400 South
Houston, TX 77042
Telephone (877) 768-3759
Fax (866) 926-5498
www.selenefinance.com
Hours of Operation (CST)
Monday – Thursday: 8 a.m. - 9 p.m.
Friday: 8 a.m. – 5 p.m.
Home Affordable Foreclosure Alternatives (“HAFA”) Matrix
The U.S. Department of the Treasury (“Treasury”) requires that Selene Finance LP assume certain obligations on transferred loans from servicers that have
signed agreements to participate in the Home Affordable Modification Program (HAMP). Eligible borrower(s) who do not qualify for HAMP must be considered
for other foreclosure prevention options including the Home Affordable Foreclosure Alternatives (HAFA) Short Sale and Deed-in-Lieu of foreclosure. However,
each servicer has some discretion in determining additional eligibility criteria and certain program rules. In order to assist borrowers and their representatives
in understanding any unique components of a servicer’s HAFA Policy, Treasury, has developed this HAFA Matrix. The summary information in this matrix is
prepared solely by Selene Finance LP and does not represent any determination by the Treasury as to the servicer's compliance with the Treasury's policies and
guidance for HAFA. Treasury does not endorse any language or policy described in this matrix. Any questions regarding the information contained in this
matrix should be directed solely to Selene Finance LP.
Basic Eligibility Requirements for HAFA Short Sale or HAFA Deed-in-Lieu Consideration
You may be eligible for a HAFA short sale or deed-in-lieu if:
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Your mortgage is secured by a first lien
Your mortgage was originated on or before January 1, 2009
Your property does not have more than 4 units
Your mortgage is past due or you believe that you will miss a
payment in the foreseeable future
The property is not condemned
You have not been convicted within the last 10 years of any of the
following in connection with a mortgage or real estate transaction:
o felony larceny, theft, fraud or forgery
o money laundering
o tax evasion
Your request for a short-sale or deed-in-lieu is a minimum of 120
days prior to the foreclosure sale date or projected foreclosure sale
date.
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The unpaid principal balance on the loan is no greater than the
following:
o 1 unit: $729,750
o 2 units: $934,200
o 3 units: $1,129,250
o 4 units: $1,403,400
The borrower on your mortgage is a natural person. Mortgage loans
made to, or secured by properties owned by corporations, partnerships,
limited liability companies or other business entities are not eligible for
assistance under HAFA.
Your request for consideration for a short sale or deed-in-lieu was
submitted on or before December 31, 2016 and the transaction closing
date is on or prior September 30, 2017.
This document contains general information about program requirements and guidelines. Additional conditions and constraints may apply based upon
investor, mortgage insurer restrictions, or other external program requirements. Please contact Selene Finance if you have any questions at (877) 768-3759.
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Documentation Requirements
All borrowers must execute relevant documents listed below to be considered for HAFA. Selene may request additional documents in addition to those
identified below based upon a specific investor requirement, mortgage insurer requirement, or where information submitted requires additional supporting
detail to consider a HAFA workout.
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General Documentation
Request for Mortgage Assistance (RMA)/Hardship Affidavit - full completed and signed by all borrowers
Court and/or trustee approval (if applicable)- If in an active Chapter 7 or 13 bankruptcy, local court or trustee approvals may be required to be
considered for a short sale or deed-in-lieu. Please consult your counsel and local court rules and procedures to determine approvals required.
Third-party customer release form- Short-sale and deed-in-lieu transactions often require that Selene discuss certain loan information with thirdparties surrounding payoff, lien release, or other elements required to consider a short sale or deed-in-lieu transaction.
Dodd-Frank Certification
Bank statements- copies of your most recent bank and brokerage statements for all accounts and all borrowers on the loan
Owner Occupied Properties
 Evidence of occupancy (within last 60
days)
o Bank statement with –oro Utility bill with name and
property address (gas, electric,
or water) –oro Signed 4506-T
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Non-owner Occupied Properties
 Non-owner occupant certification
Tenant Occupied Properties
 Rental/Lease agreement
Short Sale and Deed-in Lieu Specific Documentation
Short Sale
Deed-in-Lieu
Listing agreement and addenda (fully executed; if applicable)
 Information about other liens secured by your property
Purchase offer/agreement or sales contract
Preliminary HUD-1 Settlement Statement
Buyer proof of financing or proof of funds
Executed Request for Approval of Short Sale (RASS) or Alternative
Request for Approval of Short Sale (ARASS) form
Information about other liens secured by your property
This document contains general information about program requirements and guidelines. Additional conditions and constraints may apply based upon
investor, mortgage insurer restrictions, or other external program requirements. Please contact Selene Finance if you have any questions at (877) 768-3759.
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Valuations
Selene requires that you grant access to the interior of your property to complete a Broker Price Opinion (BPO) of your property’s value. Selene’s
representative will reach out to you to establish a time that is convenient to inspect the condition of the property upon receipt of your eligible short sale or
deed-in-lieu request.
Disputed Valuations
If there is a dispute, the borrower must provide documentation supporting a reasonable basis for that estimate. The information submitted by the borrower
will be reviewed by Selene, and if warranted, in addition to obtaining any required investor approval, Selene will re-evaluate the short sale request and
consider lowering the minimum net sale proceeds (MNSP). Disputes are reviewed within five business days.
Borrowers or Real Estate Agents may contact Selene regarding a disputed valuation at the phone numbers listed in the contact information section below.
Periodic Reassessment of Value
Selene will reassess valuation every 90 days during the HAFA short sale process. The customer is not required to contact Selene for the reassessment. If there
are any changes to valuation, Selene will review it to determine if the sales price requires updating and notify the borrower/agent accordingly.
Maximum Amount of Sale Proceeds Paid to Subordinate Mortgage Lien Holders (Aggregate Cap)
A total amount of $12,000 is available for payment of subordinate mortgage liens in order of lien priority and based on negotiated amounts. This amount shall
not be paid to satisfy non-mortgage subordinate liens, which is defined as any lien not secured by a Note and Mortgage or Deed of Trust. Selene will pay a
negotiated amount, with a 10% maximum, up to the $12,000 aggregate maximum.
Incentive Compensation
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 1%
of the current property value, up to $10,000, in relocation assistance at closing. In addition, a borrower requesting a HAFA short sale or DIL with respect to a
rental property 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 short sale or DIL.
This document contains general information about program requirements and guidelines. Additional conditions and constraints may apply based upon
investor, mortgage insurer restrictions, or other external program requirements. Please contact Selene Finance if you have any questions at (877) 768-3759.
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Payments and Expectations during Marketing Period
Selene may require minimum monthly payments, calculated at a 31% of the current income, in order to place a foreclosure on hold. If the applicable minimum
payments are not made, the HAFA Short Sale will be declined and foreclosure will continue while the borrower pursues a non-HAFA Short Sale.
During the marketing period you have certain responsibilities. You must:
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From the date of execution of an agreement, you agree to cooperate with Selene and the applicable listing agents in their efforts to list the property for
sale and to make the property available for showings as necessary. The property must be kept in good, clean condition, free of all trash and debris, both
inside and outside the home. There should not be an excessive amount of clutter that would prevent a buyer from viewing the property. The lawn must
be maintained and utilities paid. All fixtures, appliances, facilities, and carpeting that existed at the time the listing agreement was signed must remain.
Nothing can be done to lessen the value of the property.
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Be able to provide the buyer of your home with clear title. To start, determine if you have other loans, judgments or liens secured by your home, such as a
home equity line of credit or a second mortgage. If there are such liens, you will need to either pay them in full or negotiate with the lien holders to
release them before the closing date. Under this program, you must make sure other lien holders will agree not to pursue other legal action related to the
payoff of their lien, such as a deficiency judgment. You can get help from your broker to negotiate with the other lien holders.
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We may allow dollars to be paid from the sale proceeds to help get subordinate mortgage liens release. If you have these types of liens or loans on your
home, please gather any paperwork you have (such as your last statement) and send it to us when you return this signed Agreement. Remember, clearing
these other liens and delivering clear and marketable title is your responsibility.
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At several stages of the short sale process, such as after an offer is received, you will need to complete some paperwork. You are responsible for returning
all documents within the time allowed.
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Attorney fees, loss mitigation fees and other fees incurred by borrower will not be paid from the net proceeds of the sale. These fees may be deducted
from your compensation funds.
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In the event that you are unable to maintain the property and/or pay outstanding utilities or finance necessary repairs to market and close the short sale
transaction, these costs may be deducted from your compensation funds.
Short Sale Policy/Special Program Requirements and Considerations
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You cannot list the property with or sell it to anyone that you are related to or have a close personal or business relationship with unless previously approved. In other words,
it must be an “arm’s length transaction.” If you have a real estate license you can’t earn a commission by listing your own property. You may not have any
This document contains general information about program requirements and guidelines. Additional conditions and constraints may apply based upon
investor, mortgage insurer restrictions, or other external program requirements. Please contact Selene Finance if you have any questions at (877) 768-3759.
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agreements to receive a portion of the commission or the sales price after closing. Any buyer of your property must agree to not sell the home within 90
calendar days of the date it is sold by you. You may not have any expectation that you will be able to buy your house back after the closing. Any knowing
violation of the arm’s length transaction prohibition may be a violation of federal law.
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We will need to talk to your broker and others involved in the sale. Selene Finance will require that you authorize us to communicate and share personal
financial information about your mortgage, credit history, subordinate liens, and plans for relocation with your broker and other third parties that could be
involved in the transaction.
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The difference between the remaining total debt you owe and the proceeds that we receive from a short sale must be reported to the Internal Revenue
Service (IRS) on Form 1099-C, as debt forgiveness. In some cases, debt forgiveness could be taxed as income. The amount we may pay you for moving
expenses will also be reported to the IRS on form 1099-MISC as income. You will be required to provide a Form W-9 to allow us to verify your Tax
Identification Number in order to receive this payment. We suggest that you contact the IRS or your tax preparer to determine if you may have any tax
liability.
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We will follow standard industry practice and report to the major credit reporting agencies that your mortgage was settled for less than the full payment.
We have no control over, or responsibility for the impact of this reporting on your credit score. To learn more about the potential impact of a short sale on
your credit you may go to http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm.
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Selene Finance may cancel the offer for the short sale at any time during the process. Furthermore, the completion of the sale is fully dependent upon all
lien holders and mortgage insurer (if applicable), being in agreement, and accepting the terms outlined. Selene Finance is not responsible and does not
guarantee the fulfillment of any of the terms in this Agreement.
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If you have filed for bankruptcy protection, prior court and/or trustee approval may be required to proceed with a short sale.
Deed-in-Lieu Policy/Special Program Requirements and Considerations
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A deed-in-lieu requires that the homeowner transfer property ownership to Selene Finance in exchange for satisfaction of the total amount due on
your mortgage. It is designed to provide an alternative to foreclosure for those who cannot afford to pay their mortgage. A deed-in-lieu of
foreclosure requires approval by the owner of your loan and satisfaction of loans held by other property lienholders.
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You must also be able to deliver marketable title free of any other liens.
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Property Condition—You must leave the house in broom-clean condition, free of interior and exterior trash, debris or damage, and all personal belongings
must be removed from the Property. The yard must be clean and neat and you must deliver all the keys and controls (e.g., garage door openers) to us.
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Transfer/Closing—You may be required to sign standard pre-closing documents as well as attend a closing of the transfer of your Property where all
borrowers on the mortgage must be present.
This document contains general information about program requirements and guidelines. Additional conditions and constraints may apply based upon
investor, mortgage insurer restrictions, or other external program requirements. Please contact Selene Finance if you have any questions at (877) 768-3759.
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Last Updated 8/18/2015 9:07 PM
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If you have filed for bankruptcy protection, prior court approval may be required to proceed with a deed-in-lieu.
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The difference between the remaining total debt you owe and the proceeds that we receive from the subsequent sale must be reported to the Internal
Revenue Service (IRS) on Form 1099-C, as debt forgiveness. In some cases, debt forgiveness could be taxed as income. The amount we pay you for
moving expenses will also be reported to the IRS on form 1099-MISC as income. You will be required to provide a Form W-9 to allow us to verify your
Tax Identification Number in order to receive this payment. We suggest that you contact the IRS or your tax preparer to determine if you may have any
tax liability.
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We will follow standard industry practice and report to the major credit reporting agencies a deed was received in lieu of foreclosure on a defaulted
mortgage. We have no control over, or responsibility for the impact of this reporting on your credit score. To learn more about the potential impact of
a Deed in Lieu of Foreclosure on your credit you may go to http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm.
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When the Deed in Lieu of Foreclosure closes in accordance with this Agreement, we will accept the Deed in Lieu of Foreclosure in full satisfaction of
your mortgage with us and will release you from all future liability.
Average Timelines
Selene expects to consider all eligible borrowers for HAFA within 30 days of the date you request a short sale or deed-in-lieu, have submitted all required
documentation described in the previous section, and have been considered for home retention options under HAMP. If Selene’s review will take longer than
30 days or if additional information is required, Selene will notify you of the delay and continue to keep you informed as to the evaluation status.
Contact Information
Borrowers can reach out to their Single Point of Contact for questions at any time, or call the general phone number to be routed to the assigned SPOC.
Selene’s phone number and e-mail address are listed below.
Toll Free: 877-768-3759
E-mail: loanresolution@selenefinance.com
This document contains general information about program requirements and guidelines. Additional conditions and constraints may apply based upon
investor, mortgage insurer restrictions, or other external program requirements. Please contact Selene Finance if you have any questions at (877) 768-3759.
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