Short Sale And Home Loan Modification Assistance: Help is on the way, starting on April 5th
November 30, 2009, the Treasury Department released the guidelines and forms for its Home Affordable Foreclosure Alternatives Program also known as HAFA. HAFA's intention, based on qualifying factors, is to make it easier for homeowners, who do not qualify for a Home Loan Modification, to have the alternative of selling their home as a "Short Sale". This will dramatically speed up the often long and drawn out process of having the lender approve the owner for a short sale. By streamlining the process, HAFA will help to stabilize inventory levels and also home prices. How so? There is an easy answer. The cost/loss of quickly approving a short sale out weighs the cost and markdown of price of placing a home into a foreclosure. Consumers, the banks and the real estate market will win. HAFA works by providing monetary incentives connected with a short sale or a deed-in-lieu of foreclosure (DIL) in order to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. In other words, if a client fails to qualify for a home loan modification the bank/ lender will counter the loan modification applicant with an approved Short Sale Agreement with a predetermined price based on the market value. This allows the client to go to market immediately allowing for a motivated buyer to purchase the property quickly without further eroding home values.
A list of servicers participating in HAMP is available at MakingHomeAffordable.gov. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.
Learn More about the Home Affordable Foreclosure Alternatives Guidelines
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This is great information Ted! April 5th cannot come soon enough.
Hi Ted,
Yes April sounds like our WINNING month for this year!!
Thanks for the valuable info!!
Tom Davis
Great post Ted! I was actually speaking to a buyer today who waited almost 6 months for his offer to be accepted on a short sale property before walking away last year. Streamlining this process is a win-win-win scenario!
Ted - I saw this post reblogged twice already and you just put it up. More great info. Thank you for keeping us informed.
Thanks everyone. The funny thing is that this was announced months ago. I heard of it but as most, it passed by me. However, this is a huge opportunity for all. I am glad you all liked the information. As for you agents.. This is a huge marketing opportunity to get short sale clients/ listing and to help your previous clients who may be underwater.
I really hope that this will work and not be the flop that the other government programs have been.
Ted...Distressed homeowners can certainly use some good news. I'm sure April 5th seems like along way off for some owners!
Ted:
Great information. I am inclined to reserve judgment here. There is a saying, the proof is in the pudding. I would definitely be happy to see a more streamlined process, but will this cut into the bank's bottom line? I am going to re-blog it, I feel it deserves more publicity.