Archive for August, 2010

Three Distinct HAFA Programs: Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure Update

Certified HAFA Short Sale Specialist

Certified HAFA Short Sale Specialist

Sacramento Short Sale Certified Specialist Forth Hoyt Explains and Shares Information on HAMP and HAFA, and shows how they are the same programs.  Read on to find out and guidelines for the three different HAFA programs.

I have been on a Short Sale Webinar with Partner First Nationwide real Estate Network (where I got my PCS SHORT SALE Certification)with Scott Thompson – It was called “Pre-Listing Appointment Strategies in Today’s HAFA Era. ”

The program included great information on the three distinct HAFA programs out there.  This information just affirmed what I have always done and continue to do: to help Sacramento Short Sale Sellers make the right decisions.  In order to do this Short Sale Sellers in Sacramento need up to date information. As a Sacramento certified Short Sale agent and Expert Sacramento Short Sale Negotiator, I make sure my clients understand every option, every detail of each of the different programs they may be eligible for so that they can make a wise choice and understand the consequences and ramifications of each of the Foreclosure Alternatives available to homeowners today.

Learned some great places to go to actually see the Short Sale Supplemental Directives, or actual HAFA short sale program  documents and guidelines on HAFAHAFA program guidelines are very different for each of the different programs, the Treasury Dept HAFA (covers all private investors; (not Fannie Mae, Freddi Mac, VA or FHA), The Fannie Mae HAFA and the Freddie Mac HAFA.

I’ll include the links and even copy the guidelines here-

Treasury’s HAFA for Private Investors:

Help For America’s Homeowners By Making  Home Affordable

Supplemental Directive 09-09 Revised March 26, 2010
Home Affordable Foreclosure Alternatives – Short Sale and
Deed-in-Lieu of Foreclosure
Update

Background
In Supplemental Directive 09-01, the Treasury Department (Treasury) announced the eligibility, underwriting and servicing requirements for the Home Affordable Modification Program (HAMP). Under HAMP, the servicers apply a uniform loan modification process to provide eligible borrowers with sustainable monthly payments for their first lien mortgage loans. While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve a HAMP modification request, a HAMP modification is offered and not accepted by the borrower, or the borrower falls out of a HAMP modification. In these instances, the borrower may benefit from an alternative that helps the borrower transition to more affordable housing and avoid the stigma of a foreclosure.
This Supplemental Directive replaces in its entirety Supplemental Directive 09-09 and is effective as of April 5, 2010. This Supplemental Directive provides guidance to servicers for adoption and implementation of the Home Affordable Foreclosure Alternatives Program (HAFA).  HAFA is part of HAMP and provides financial incentives to servicers and borrowers who utilize a short sale or a deed-in-lieu to avoid a foreclosure on an eligible loan under HAMP. Both of these foreclosure alternatives reduce the need for potentially lengthy and expensive foreclosure proceedings. The options help preserve the condition and value of the property by minimizing the time a property is vacant and subject to vandalism and deterioration. In addition, these options generally provide a substantially better outcome than a foreclosure sale for borrowers, investors and communities.

Read the rest of the Treasury’s HAFA Guidelines for All Non GSE’s Here


Questions  on your particular situation?                                                                                                                                  Contact us today at Forth Hoyt’s Sacramento Short Sale Center


Fannie Mae’s HAFA Guidelines for their GSE owned FANNIE OWNED HAFA:

The Fannie Mae HAFA Guidelines are covered in the Announcement SVC 2010-07  Introduction of Fannie Mae’s Home Affordable Foreclosure Alternatives Program

Introduction
In Announcement 09-05R, Reissuance of the Introduction of the Home Affordable Modification
Program,
HomeSaver Forbearance™, and New Workout Hierarchy, Announcement 09-31, Updates and Clarifications to the Home Affordable Modification Program, and in Announcement SVC-2010-03, Home Affordable Modification Program – Program Update and Resolution of Active Trial Modifications, Fannie Mae announced the eligibility, underwriting and servicing requirements for the Home Affordable Modification Program (HAMP). Under HAMP, servicers use a uniform loan modification process to provide eligible borrowers with sustainable monthly payments for first lien mortgage loans.
On November 30, 2009, the Treasury Department (Treasury) released policy guidance related to the Home Affordable Foreclosure Alternatives (HAFA) Program to mitigate the impact of foreclosure on borrowers eligible for but unsuccessful under HAMP. This policy guidance was supplemented by the reissuance of the Treasury’s Supplemental Directive 09-09 on March 26, 2010. HAFA is part of HAMP and provides financial incentives to servicers and borrowers who utilize a short sale (referred to in the Servicing Guide as a “preforeclosure sale”) or a deed-in-lieu of foreclosure (DIL) to avoid a foreclosure on an eligible loan under HAMP. Both of these foreclosure alternatives reduce the need for potentially lengthy and expensive foreclosure proceedings. The options help preserve the condition and value of the property by minimizing the time a property is vacant and subject to vandalism and deterioration. In addition, these options generally provide a substantially better outcome than a foreclosure sale for borrowers, investors, and communities.
The Fannie Mae HAFA program simplifies and streamlines the use of short sales and DIL options by incorporating the following unique features:

Read entire Fannie Mae HAFA Supplemental Guidelines Here

Questions  on your particular situation?                                                                                                                                  Contact us today at Forth Hoyt’s Sacramento Short Sale Center


HAFA Guidelines for Freddie Mac –  their GSE owned Freddie Mac HAFA:

Freddie Mac Bulletin For Freddie Mac Servicers – Subject: Home Affordable Foreclosure Alternatives

Mortgage and Borrower Eligibility

SUBJECT: HOME AFFORDABLE FORECLOSURE ALTERNATIVES
With this Single-Family Seller/Servicer Guide (“Guide”) Bulletin, we are announcing Freddie Mac’s requirements for the United States Department of the Treasury (“Treasury”) Home Affordable Foreclosure Alternatives (HAFA) initiative.
BACKGROUND
In Guide Bulletin 2009-6, Freddie Mac announced its eligibility, underwriting and servicing requirements for the Home Affordable Modification Program (HAMP). These requirements are incorporated into Guide Chapter C65, Home Affordable Modification Program (as amended by Bulletins 2009-26, 2009-28, 2010-1 and 2010-3). Under HAMP, Servicers apply a uniform loan modification process to provide eligible Borrowers with sustainable monthly payments for their First Lien Mortgages. While HAMP is intended to reach a broad range of at-risk Borrowers, it is expected that Servicers will encounter situations where HAMP is not a viable option.
On November 30, 2009, Treasury released Supplemental Directive 09-09, Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure, which was subsequently revised on March 26, 2010 by Supplemental Directive 09-09R. HAFA is part of HAMP and provides financial incentives to Servicers and Borrowers who utilize a short sale or a deed-in-lieu to avoid a foreclosure on a loan that meets the eligibility requirements for HAMP. Both of these foreclosure alternatives reduce the need for potentially lengthy and expensive foreclosure proceedings. These options help preserve the condition and value of the property by minimizing the time the property is vacant and subject to vandalism and deterioration. In addition, these options generally provide a substantially better outcome for borrowers and communities than a foreclosure sale and Borrowers may benefit from an alternative that transitions the Borrower to more affordable housing.
Freddie Mac’s HAFA requirements are contained in the new Guide Chapter D65, Home Affordable Foreclosure Alternatives. Servicers must comply with the requirements set forth in Chapter D65, which provide the eligibility, evaluation, processing and servicing requirements for the application of HAFA to Freddie Mac Mortgages.
Effective August 1, 2010, Freddie Mac Servicers must have incorporated HAFA into their operations and begin offering HAFA solutions to eligible Freddie Mac Borrowers.  However, Servicers may begin implementing HAFA immediately.
Borrowers may be accepted into HAFA if a Form 1135, Short Sale Agreement, or a Form 1139, Deed-in-Lieu Agreement, as described in Chapter D65, is fully executed by the Borrower and received by the Servicer on or before December 31, 2012.Read The Entire Fredie Mac Bulletin here.

Questions  on your particular situation?                                                                                                                                  Contact us today at Forth Hoyt’s Sacramento Short Sale Center

  • Be aware that Freddie Mac has strict requirements and guidelines of which homeowners and which loans will be eligible for Freddie Mac  HAFA

The following mortgages are eligible for HAFA:

  • First-lien mortgages, owned, guaranteed, or securitized by Freddie Mac that were originated on or before January 1, 2009.
  • Eligible properties are single-family 1-4 unit primary residences, including condos, Guide-eligible manufactured homes, and negotiated conforming jumbos.
  • Mortgaged property is not abandoned, condemned, or vacant (without an applicable exception).

Borrowers may be eligible for this initiative if they meet the following requirements:

  • Borrowers must be more than 60 days delinquent and have cash reserves less than the greater of $5,000 or three times their current monthly mortgage payment.
  • Borrowers must have first been considered for a HAMP modification and then for other Freddie Mac home retention options under Guide Chapter B65, but was either ineligible, did not complete, or declined the modification.
  • Borrowers may be in foreclosure, in pending litigation involving the mortgage, or in active bankruptcy.
  • Borrowers must be able to convey a clear, marketable title to the mortgaged property.

Other mortgage and borrower eligibility requirements apply as noted in Guide Section D65.3.

Questions  on your particular situation?                                                                                                                                  Contact us today at Forth Hoyt’s Sacramento Short Sale Center

Authored by Forth Hoyt | Discussion: 1 Comment »

Short Seller’s Newest Anti Deficiency Protection for Sacramento Short Sellers With SB 931

California may have a new anti deficiency law protecting struggling homeowners

California May Have a New Anti Deficiency Law Protecting Struggling Homeowners

Sacramento area Short Sale Specialist and Sacramento Area Certified Short Sale Agent Forth Hoyt Reports on:

The Little Bill That Could-


Will the newest California anti deficiency bill become law? The Newest Short Sale Protection law for struggling  homeowners will surely affect the Sacramento short sale market…

Sacramento Short Sales will surely increase if the little bill that could is signed into law- Short sellers will be glad to hear bout this newest California anti-deficiency bill that is specifically written to protect short sellers from recourse – why are we just hearing about this?  Nearly silently, this newest foreclosure protection bill in  California, Senate Bill 931 passed completely unopposed last week and is headed for Governor Schwarzenegger to sign into law. All eyes had been on Senate Bill   1178, which stops lenders from pursuing homeowners who have refinanced and later defaulted, so the hoopla over SB 931 was overlooked. Lawyers sometimes tell potential short sale sellers that a foreclosure or a bankruptcy offers better protection for the homeowner than a short sale.

New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?

Just the first couple lines from the SB 931 Assembly Hearing: June 7, 2010

ASSEMBLY COMMITTEE ON BANKING AND FINANCE
Mike Eng, Chair
SB 931 (Ducheny) – As Amended: June 1, 2010
SENATE VOTE: 31-0
SUBJECT: Mortgages: deficiency judgments
SUMMARY: Provides that in the case of a short sale on residential real property, the holder of the first mortgage or deed of trust shall fully discharge any remaining borrower’s indebtedness following the sale when the sale has been agreed to in writing. Additionally, that nothing shall limit the ability of the holder of the first deed of trust or first mortgage to seek damages, or use existing rights or remedies in those cases where the homeowner has committed fraud or waste in connection with the sale of the real property.

If signed, this newest California Short Sale Recourse Law  will have a huge impact on  our Sacramento area short sale inventory, as many more struggling  homeowners may use a short sale as a way to get out of their upside down home, if there is  no lender recourse for the amount the bank is short…

More info on New Deficiency Protection For Sacramento Short Sales; SB 931 Protects All First Mortgages.

Need information on you particular situation? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center.

Authored by Forth Hoyt | Discussion: 2 Comments »

Notice Of Defaults In Sacramento Are Backing Up, But Still Being Postponed

Foreclosure Notices In Sacramento Continue At Alrming Rates

Foreclosure Notices In Sacramento Continue At Alarming Rates

Foreclosure Sales, or Trustee Sales in Sacramento, the actual Trustee action or   Sacramento county trustee sale at 720 9TH ST  downtown Sacramento, held nearly every business day are still being postponed at record rates, but so are Notices of default Filings in Sacramento County.

ho long can they continue to file the default, file the notice of sale and then just postpone? Well, if they postpone for over a year, they will have to re-file the Notice of Default, as I understand

“Despite a tsunami of mortgage delinquencies we continue to see no signs of a foreclosure wave” says Sean O’Toole, Founder and CEO of ForeclosureRadar.com. “Lenders and government intervention continue to delay foreclosures despite their continued failure to find a long term solution to unsustainable negative equity.”

See Foreclosureradar’s Foreclosure Report at Wereheretohelp.org

Authored by Forth Hoyt | Discussion: 1 Comment »

Foreclosure Option In Sacramento

Struggling Homeowners are Searching For Foreclosure Options

Struggling Homeowners are Searching For Foreclosure Options

Sacramento Homeowners now  include a huge number of homeowners that have lost jobs, thair salaries cut, had hours reduced and overtime stopped.

With the housing market here in Sacramento, El Dorado and Placer counties and the loss of housing values, many homeowners are looking for ways to stop foreclosure, keep up on their payments and stay in their home

Authored by Forth Hoyt | Discussion: No Comments »





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