The Treasury Department yesterday gave guidance to servicers on the Home Affordable Foreclosure Alternatives Program (HAFA).
The new version of HAFA looks very much like the one envisioned in the initial announcement made in May.
Yesterday's Treasury announcement includes the general terms and conditions, evaluation process, documentation, and reporting requirements.
The program will take effect April 2010 and servicers already participating in the Home Affordable Modification Program (HAMP) will be required to follow guidance.
One aspect of the the program is that it standardizes the eligibility for short sales. It is available to borrowers who meet HAMP eligibility requirements although do not qualify for a Trial Period Plan or do not successfully complete a Trial Period Plan.
Upon the successful closure of a short sale or deed-in-lieu through the HAFA, the following incentives of $1,500 in relocation assistance to the borrower; $1,000 in expense reimbursement to the servicer; as well as up to $1,000 in investor reimbursement for subordinate lien releases will be given.
Aside from these incentives, the program uses borrower financial information collected in conjunction with HAMP, removing the need for added eligibility analysis, sets minimum acceptable net sale proceeds to be determined by a consistent written policy developed by each servicer, and requires borrowers to be fully released from future liability for the debt.
According to analysts from Bank of America Merrill Lynch, the program is positive on the margin.
Even though the program provides standard rules, documentation, and process flow, the ability for servicers to make their own policy will leave HAFA's success largely up to them.
The success of this program, analysts said, is also a "double edged sword." They explained that short sales limit loss severity because of lower advancing and better bids on the property as compared with REOs.
But, analysts said that increased short sales will shorten the liquidation timelines and release the supply of distressed properties into the market sooner.
One of the key drivers of the better-than-expected headline numbers in the housing market, analysts said, has been the stalled foreclosure process. These numbers could also be attributed to the supply being artificially held back from hitting the market.
They further added that many of the issues that they have highlighted in the past still remain, such as moral hazard.
Sunday, December 20, 2009
Saturday, December 19, 2009
Do you need to sell your home, but owe more than it is worth?
It is very common these days for seller'sl to find themselves in a situation where they owe more than the home will sell for. These are called a short sales and they take special dedication and skill to process successfully!
Not every agent can or will do short sales!
Because short sales are difficult to manage and need extra attention, many agents are charging up front fees, or are not taking short sale listings at all! I work with sellers in difficult situations. It isn't always easy, but it is very rewarding to help homeowners solve their real estate problems.
The sooner you call me, the sooner we can find a solution for you!
Whatever your reason for selling, I can help you make it happen by successfully marketing and negotiating the sale of your home. You aren't in this alone!
Similarly, in this current economic crisis, millions of homeowners facing financial hardship and possible foreclosure action are requesting the help of agents with the Certified Distressed Property Expert® (CDPE) designation. A CDPE is a real estate professional with specific understanding of the complex issues that confront homeowners in distress. Through comprehensive training and market experience, CDPE's are able to provide real solutions for homeowners facing hardships in today's market.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. CDPE's believe that in almost all cases, the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools necessary to help homeowners find the best solution for their particular situation. While enduring financial difficulties are challenging for any family, the process of finding a qualified real estate professional should not be. Tim Schmitz has achieved the CDPE designation, ensuring you deal with a professional trained to address your specific needs. CDPE's don't merely assist in selling properties, they serve and help save their clients in need.
Check out my other site at:
www.raincityshortsale.com
Not every agent can or will do short sales!
Because short sales are difficult to manage and need extra attention, many agents are charging up front fees, or are not taking short sale listings at all! I work with sellers in difficult situations. It isn't always easy, but it is very rewarding to help homeowners solve their real estate problems.
The sooner you call me, the sooner we can find a solution for you!
Whatever your reason for selling, I can help you make it happen by successfully marketing and negotiating the sale of your home. You aren't in this alone!
Similarly, in this current economic crisis, millions of homeowners facing financial hardship and possible foreclosure action are requesting the help of agents with the Certified Distressed Property Expert® (CDPE) designation. A CDPE is a real estate professional with specific understanding of the complex issues that confront homeowners in distress. Through comprehensive training and market experience, CDPE's are able to provide real solutions for homeowners facing hardships in today's market.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. CDPE's believe that in almost all cases, the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools necessary to help homeowners find the best solution for their particular situation. While enduring financial difficulties are challenging for any family, the process of finding a qualified real estate professional should not be. Tim Schmitz has achieved the CDPE designation, ensuring you deal with a professional trained to address your specific needs. CDPE's don't merely assist in selling properties, they serve and help save their clients in need.
Check out my other site at:
www.raincityshortsale.com
Thursday, December 17, 2009
How important is the lender package in a short sale?
The short sale package can make or break the transaction. The proposal put together for the existing lender and follow up after submission are the most important two issues in getting your short sale approved and closed. You have to make certain that you submit everything the bank is looking for and you may want to submit other items that the bank has not asked for but are highly recommended. Having a complete package is key to getting your short sale looked at by the banks.
Most banks want the following items submitted as a complete package:
• Listing agreement
• Listing history
• Executed contract
• Buyer pre-approval letter or proof of funds if cash
• Preliminary HUD statement
• Hardship letter from seller
• Paycheck stubs (usually latest 2)
• Bank statements (usually last 2 months)
• Financial worksheet
• Tax returns (last 2 years)
• If you cannot include all of these items, make certain to insert a page as a placeholder for that item explaining why you have not included it in the package.
The following items will help to make a stronger package for the negotiator at the bank to review. These items together with the above items will help to make a more powerful case for the approval of the short sale.
• Cover Letter including your contact information
• Explanation of marketing you have done with a brief history of showings and feedback
• Market statistics or a BPO completed by you
• Damage and Repair Report and pictures
Remember also to make sure to put the loan number and borrower’s name on each page you forward to the bank. And of course, make sure you keep an entire package for yourself as the banks often misplace portions of your package.
If you are a seller, experiencing a hardship with your current mortgage and thinking of doing a short sale on your home, make sure you select an agent to list and sell your home who has experience with the short sale process and has successfully sold their short sale listings.
If you are a seller and wish to contact us for a FREE consultation regarding a possible short sale on your home, please call us at (425) 372-6382 or send email to timschmitz@cbbain.com
Most banks want the following items submitted as a complete package:
• Listing agreement
• Listing history
• Executed contract
• Buyer pre-approval letter or proof of funds if cash
• Preliminary HUD statement
• Hardship letter from seller
• Paycheck stubs (usually latest 2)
• Bank statements (usually last 2 months)
• Financial worksheet
• Tax returns (last 2 years)
• If you cannot include all of these items, make certain to insert a page as a placeholder for that item explaining why you have not included it in the package.
The following items will help to make a stronger package for the negotiator at the bank to review. These items together with the above items will help to make a more powerful case for the approval of the short sale.
• Cover Letter including your contact information
• Explanation of marketing you have done with a brief history of showings and feedback
• Market statistics or a BPO completed by you
• Damage and Repair Report and pictures
Remember also to make sure to put the loan number and borrower’s name on each page you forward to the bank. And of course, make sure you keep an entire package for yourself as the banks often misplace portions of your package.
If you are a seller, experiencing a hardship with your current mortgage and thinking of doing a short sale on your home, make sure you select an agent to list and sell your home who has experience with the short sale process and has successfully sold their short sale listings.
If you are a seller and wish to contact us for a FREE consultation regarding a possible short sale on your home, please call us at (425) 372-6382 or send email to timschmitz@cbbain.com
Monday, December 14, 2009
www.raincityshortsale.com
Chances are, you or someone you know in Western Washington is facing the possibility of foreclosure. But you need to understand that you are not alone.
Today, 1 out of every 10 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.
Through my experience handling distressed properties at Coldwell Banker Bain, I've found that homeowners today have more questions than answers about their circumstances. I have created this site to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners.
You may also have noticed that I'm offering you a FREE Report to explain your options and help you decide on a course of action. The idea of losing a home can be overwhelming, and I feel it is vital for you to have all the facts necessary to make an informed decision.
As an agent with the CDPE® Designation, I have a strong and unique appreciation of the factors affecting the market, and know that there are options available to you.
If you would like to know more about your options, please call me at (425) 372-6382.
I am here to help … in any way I can.
Tim Schmitz
www.raincityshortsale.com
Tim Schmitz
Coldwell Banker Bain
7808 SE 28th St., Ste# 128
Mercer Island, WA 98040
(425) 372-6382
Today, 1 out of every 10 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.
Through my experience handling distressed properties at Coldwell Banker Bain, I've found that homeowners today have more questions than answers about their circumstances. I have created this site to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners.
You may also have noticed that I'm offering you a FREE Report to explain your options and help you decide on a course of action. The idea of losing a home can be overwhelming, and I feel it is vital for you to have all the facts necessary to make an informed decision.
As an agent with the CDPE® Designation, I have a strong and unique appreciation of the factors affecting the market, and know that there are options available to you.
If you would like to know more about your options, please call me at (425) 372-6382.
I am here to help … in any way I can.
Tim Schmitz
www.raincityshortsale.com
Tim Schmitz
Coldwell Banker Bain
7808 SE 28th St., Ste# 128
Mercer Island, WA 98040
(425) 372-6382
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