El Dorado Hills Short Sales And Folsom Short Sales Not Closing. Why?
April 3rd, 2011 Categories: Sacramento Real Estate Trends, Short Sales
El Dorado Hills And Folsom Short Sale Information
El Dorado Hills Short Sale Agent and Certified Short Sale Specialist Reports:
El Dorado Hills and Folsom, only minutes apart and with so many similarities in many ways also have have short sale markets that are similarly failing… why is that?
El Dorado Hills Active Short Sale numbers have actually gone down over the last 14 months, but just because they are going pending so quickly! Monthly new listings has doubled, the number going pending (short sale approved by lender) has almost tripled. Why then, has the number of homes successfully selling (successfully closing escrow) actually gone down from year ago levels? Successful Short Sales in El Dorado Hills are actually lagging! Just like Folsom Short Sales, Short Sales in El Dorado Hills are not closing escrow…
Find out Why:
Short Sale Agent in Folsom Reports Why Short Sale Escrows In Folsom May Be Failing
El Dorado Hills Short Sale Numbers for the past 14 months:
| Date | 12/09 | 1/10 | 2/10 | 3/10 | 4/10 | 5/10 | 6/10 | 7/10 | 8/10 | 9/10 | 10/10 | 11/10 | 12/10 | 1/11 | 2/11 |
| For Sale | 84 | 68 | 74 | 57 | 65 | 62 | 74 | 90 | 80 | 85 | 75 | 60 | 75 | 68 | 67 |
| New Listing | 16 | 28 | 31 | 29 | 36 | 29 | 29 | 34 | 31 | 36 | 23 | 23 | 16 | 36 | 32 |
| Sold | 14 | 19 | 12 | 12 | 16 | 12 | 23 | 12 | 11 | 17 | 12 | 19 | 23 | 12 | 10 |
| Pended | 17 | 23 | 13 | 20 | 21 | 10 | 14 | 9 | 26 | 14 | 19 | 13 | 8 | 36 | 44 |
| Months of Inventory based on Closed Sales | 6.0 | 3.6 | 6.2 | 4.8 | 4.1 | 5.2 | 3.2 | 7.5 | 7.3 | 5.0 | 6.3 | 3.2 | 3.3 | 5.7 | 6.7 |
Folsom Short Sales are now nearly 30% of all closed sales! Successful Shot sales are now the norm in Folsom. The graph below ith the Folsom Short Sale Numbers show the amount of active short sales has more than doubled. Look at the number of Folsom’s pended short sales; those going pending are short sales that have been approved by the bank and the buyer can start their inspection period… Successful Sort Sales in Folsom have remained stable while pending and active short sales are surging!
Folsom Short Sale Numbers, for the past 14 months:
| Date | 12/09 | 1/10 | 2/10 | 3/10 | 4/10 | 5/10 | 6/10 | 7/10 | 8/10 | 9/10 | 10/10 | 11/10 | 12/10 | 1/11 | 2/11 |
| For Sale | 31 | 39 | 43 | 45 | 52 | 65 | 56 | 61 | 76 | 75 | 77 | 78 | 74 | 78 | 67 |
| New Listing | 21 | 21 | 21 | 33 | 26 | 29 | 29 | 23 | 41 | 23 | 25 | 24 | 23 | 36 | 31 |
| Sold | 15 | 12 | 12 | 16 | 6 | 19 | 14 | 8 | 12 | 12 | 11 | 7 | 16 | 11 | 15 |
| Pended | 17 | 13 | 12 | 15 | 15 | 9 | 20 | 16 | 19 | 18 | 14 | 12 | 12 | 30 | 54 |
| Months of | 2.1 | 3.3 | 3.6 | 2.8 | 8.7 | 3.4 | 4.0 | 7.6 | 6.3 | 6.3 | 7.0 | 11.1 | 4.6 | 7.1 | 4.5 |
…
| Discussion: No Comments »
New Chase Short Sale Outreach Program Helps homeowners and Investors Alike!
March 1st, 2011 Categories: Default News, Foreclosure News, National Real Estate Trends, Short Sales
Chase Outreach Program Targets Both Homeowners and Investors
Sacramento real estate investor Finds Sacramento Area Short Sale Specialist And Certified Short Sale Negotiator to help her participate in the new Chase Short Sale Outreach Program.
Got a call off my Sacramento Short Sale Center Website from a Sacramento investor yesterday about eleven o’clock. She was frantic, as she had talked with another Sacramento Short Sale Agent who had promised to meet with her on Sunday and preview her triplex and take her listing. She needed it done quickly because she had been communication with Chase and they had offered her their new CHASE SHORT SALE OUTREACH PROGRAM. The other agent had flaked and was not answering his phone, (I hope nothing bad happened) so she had asked the short sale negotiator at the outreach program what to do- the negotiator said to Google Sacramento certified short sale agent and my sites came up several times on the first page. The investor explained that the Trustee Sale (or Foreclosure Sale) was in almost exactly twenty four hours and she needed to list the property so she could get the listing paperwork turned in to the Chase outreach department and they could extend the sale-
Well, long story short; my sign went up today, the foreclosure sale was postponed and I preview the property and meet the tenants tomorrow. Another listing and another upcoming Sacramento short sale closing!
| Discussion: 1 Comment »
To Sign or Not To Sign: Short sale agreement with lender when they reserve the right to pursue deficiency?
February 14th, 2011 Categories: Foreclosure News, Real Estate News, Sacramento Real Estate Trends, Short Sales
Deficiency Judgments on First Mortgages in California- Not any more?
Sacramento Certified Short Sale Specialist explains the brand new California anti-recourse Short Sale law:
Do you sign a short sale approval letter that reserves the right to pursue a deficiency.
As a Sacramento Short Sale Specialist and Certified Short Sale Expert I get questions all the time from other agents. Other short sale agents here in my office, other Sacramento area short sale agents, and even (sometimes most frequently) agents from other California Short Sale Markets who find my Sacramento Short Sale Center websites and contact me with their short sale questions.
One of the most frequently asked questions I hear is “I have successfully negotiated this short sale file but, what do I do; the short sale agreement letter from the lender contains language where the investor/servicer is reserving the right to pursue a deficiency judgment on the balance …do I have my clients sign it?”
First of all, I am a short sale Realtor. Although I have taken hundreds of hours of training and I’m Certified many times over, I know the ins-and-outs of successfully negotiating a short sale, but I am not an attorney and I make sure everyone I talk to knows that-
But I do know there are new California laws that stop banks from pursuing deficiency judgments on first mortgages. There have always been (since the 30′s) laws stopping deficiency on purchase money loans on homeowner occupied units, but there was danger for income properties and refinanced loans where there was money taken out… before 580e; as I understand, there was valid law giving the lenders power to file for a deficiency judgment for the amount the lender wrote off in a short sale.
Here’s what I know about California SB931 and California Civil Code Section 580e:
Read More on California Short Sale Anti Deficiency Law SB931.
Questions on your particular situation? Is your second mortgage non-recourse too? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
If you area homeowner faced with the decision of whether or not to sign the lender consent agreement in a Short Sale or lender short sale approval letter, be sure to get competent legal advice first from a real estate attorney. No matter what. even if you feel like you are getting great information from your lender, from the internet, from other sources- definitely spend the couple hundred dollars and talk to a real estate attorney!
You can also read the full law here: California SB931 and Civil Code 580e
New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?
Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
In closing, always obtain legal and tax advice before making a decision between a short sale or a foreclosure.
| Discussion: 1 Comment »
Dealing with Realtors After Foreclosure
January 27th, 2011 Categories: Foreclosure News, National Real Estate Trends
Cash for Keys
Who are these real estate agents and why are they bothering me?
Got this great article from Tenants Together
The owner after foreclosure, usually a bank, will often hire a real estate agent to market the property.
These agents generally try to get all tenants out of the property as quickly is possible. Remember, their goal is to get you out.
I don’t get it. Why do they want this property vacant?
Banks and agents claim that it is easier for them to sell the property if it is vacant. It doesn’t make much sense. Vacant properties attract vandals, contribute to neighborhood blight, and bring down property values. Plus the owner is giving up rental income by throwing out tenants.
The California Association of Realtors has opposed recent legislative efforts to protect tenants after foreclosure. It may not make sense, but unfortunately, that’s their position.
A real estate agent is pressuring me to move. What should I do?
If someone is telling you to move out but doesn’t serve a written notice, you don’t have to do anything.
Tell the real estate agent (or other bank representative) to put any communications about your tenancy in writing.
To be safe, inform the bank and its representatives in writing that you are a tenant, so they don’t move forward with an eviction claiming they didn’t know a tenant lived at the property.
The real estate agent is lying to me about my rights. What are my options?
Stop talking to the agent. Demand all communication in writing.
Contact a tenant organization or legal aid to learn about your rights from a reliable source.
File a complaint with the Department of Real Estate against any real estate agent that lies to you about your rights. The agent could lose his or her license for this.
The agent keeps talking about “cash for keys”. What does this mean?
These are agreements that banks/agents want you to sign in which you give up your rights as a tenant in exchange for money. In the typical agreement, the tenant is paid money to agree to move out sooner than required by law.
You are under no obligation to accept these “cash for keys” offers.
If you want to work out a deal in which you move, negotiate the terms of the agreement to your satisfaction.
Get help before signing any agreement. There may be legal consequence and you need to know what you are getting into.
Are there any special things to keep in mind when negotiating cash for keys agreements?
Carefully balance whether you are better off accepting a deal or staying in your home as long as possible.
Do everything in writing and keep copies.
Make sure that the person signing any agreement for the owner is an authorized representative for the owner.
Get as much of the money up front as you can, and the rest when you turn over the keys.
Consider adding a provision requiring the bank to return your deposit on the same day you turn over the keys.
I had an agreement, but now the agent won’t honor it.
Unfortunately, many tenants report that agents and banks do not comply with their end of the deal. Some tenants move out in reliance on a deal, but then are left with nothing. Tenants who are stiffed can sue, but it may take months to get the money.
Always insist on getting some of the money up front, and the rest at the time you turn over your keys, to avoid problems.
Call Tenants Together for more information. Our Tenant Foreclosure Hotline is 415.495.8012. If you need legal assistance, please contact your local legal aid office.
| Discussion: 1 Comment »
Forth Hoyt’s Resume; Short Sale Certifications And Real Estate Designations
January 7th, 2011 Categories: All about me, Short Sales, Shortsales
Forth Hoyt, Sacramento Area Certified Short Sale Specialist
Forth Hoyt
CRS, CDPE, RDCpro, SRES, e-PRO, PSC
Certified HAFA Specialist,
Certified Mortgage Resolution Specialist
Certified Home Retention Specialist
Sacramento County Master’s Club
Certified Pre-Foreclosure and Short Sale Specialist
California Real Estate License #01319540
Objective:
To assist you and your family with your real estate needs. To enable a quick, professional, efficient, hassle free transaction through our unsurpassed market knowledge, buyer acquisition systems and negotiation skills.
Designations
- 2011 Internet Marketing Specialis Designation – The Internet Marketing Specialist Designation (IMSD) is a proven training program developed through interviews with over 1,000 Mega-Agents who use internet marketing as the cornerstone of their buyer acquisition systems. The IMSD community specifically what works straight from the top real estate professionals nationwide
- 2010 Certified Distressed Property Expert Designation- Completed rigorous, intensive training- most coveted distressed property designation
- 2010 National Association Of Realtor’s Short Sale and Foreclosure Resource Designation Completed NAR’s only short sale an foreclosure resource program
- 2010 Certified HAFA Specialist Designation Certification intensive 14 module class on Treasury’s Short Sale Program
- 2009 PSC Designation; the Pre-foreclosure Specialist Certification class, (PSC) is an interactive, two-day “Short Sale Mastery Workshop”
- 2008 Mortgage Resolution Specialist Designation- Intensive one day boot camp for short sales
- 2008 HRC Certified Home Retention Specialist designation course from Titanium Solutions
- 2008 CRS Designation- completed the rigorous educational and production requirements to earn the Certified Residential Specialist Designation.
- 2007 SRES Designation- Senior Real Estate Specialist – Real Estate Buyer’s Agent Council of the National Association of REALTORS®.
- 2007 e-PRO Designation - e-PRO is the only National Association of REALTORS® approved Internet Certification Program.
- 2007 RDCPro™ Certification Default Schools’ REO Default Certified Professional
- 2007 CREOB Designation – Premiere Asset Services; Default training designation
Summary of Qualifications
- Lead agent and ‘Rainmaker’; The Hoyt Group, Keller Williams. Consistently in the top 2% – Keller Williams nationwide.
- Member Agent Leadership Council; Keller Williams Folsom
- Chairman of 2008 Finance Committee; Keller Williams Folsom
- Dynamic leader and team builder, distinguished, committed and decisive, consistently motivating others towards success.
- Co-Owner Ethix Appraisal Service.
- Owner and operator of Basin Property Management LLC.
- Certified Keller Williams Trainer and Agent Faculty Member. I frequently teach in our market center and other Keller Williams market centers in the area.
- Specializing in the listing, negotiating and closing of properties, including short sales and REO.
- Team of specialists include; 2 listing agents, 8 buyers agents,1 licensed transaction coordinator, 1 licensed real estate appraiser, 1 Marketing Specialist, title and escrow, property management as well as a team of maintenance workers that maintain our vacant listings as well as our own personal properties.
Brief History
-2005-present
Keller Williams, Folsom, Ca. (KW is the second largest brokerage in our area.)
Team Leader; The Hoyt Group. 2007 top 1% in production for office.
-2003-2005
RE/MAX Gold, Granite Bay (RE/MAX Gold is second largest brokerage in our area)
Lead Listing Specialist with Team Conway. Team Conway was the #1 Agent Team with RE/MAX Gold in 2003, 2004 with my assistance- I listed and sold up to 42 listings annually, as a team we did over 250 transactions annually consistently #1 or #2 agent team; RE/MAX Gold.
-2001-2002
RE/MAX Gold, Granite Bay
Obtained my real estate agents license in 2001 and began working as lead generator and marketing consultant/coordinator for the Ric Chen. The 2002 yr. #1 listing agent; RE/MAX Gold.
Real Estate and Related Education
- 2001 -California Real Estate Salesperson License
- 2005 -Keller Williams Business Planning Clinic
- 2005 -Ultimate Real Estate Success Super Conference with Craig Proctor
- 2005 -Keller Williams Listing Clinic
- 2005 -Keller Williams Time Management with the 4-1-1
- 2005 -Keller Williams Listing Clinic (second time)
- 2006 -By Referral Only Main Event Conference with Joe Stumpf
- 2006 -Keller Williams Consulting Clinic
- 2006 -Keller Williams Train The Trainer Clinic
- 2006 -Keller Williams Buyers Clinic
- 2006 -Keller Williams Consulting Clinic
- 2007 -Keller Williams Listing Clinic (third time)
- 2007 -Keller Williams Buyers Clinic (second time)
- 2007 -Turning Point Leadership Conference with Brian Buffini
- 2008 – CRS PRO-act- Las Vegas, NV- 6 Day Training from CRS Instructors, the industry’s premier trainers.
- 2008 Mortgage Resolution Specialist Designation- Intensive one day boot camp for short sales
- 2008 HRC Certified Home Retention Specialist designation course from Titanium Solutions
- 2008 – Quantum Leap, Pleasanton CA – Business and Life Success Training with Mo Anderson.
- 2008 CRS Designation- completed the rigorous educational and production requirements to earn the Certified Residential Specialist Designation.
- 2009-Certified Pre-Foreclosure and Short Sale Specialist the Pre-foreclosure Specialist Certification class, (PSC) is an interactive, two-day “Short Sale Mastery Workshop”
- 2009- Seller Mastery- with Bruce Hardie
- 2009- Keller Williams Luxury Homes Marketing Clinic
- 2009 PSC Designation the Pre-foreclosure Specialist Certification class, (PSC) is an interactive, two-day “Short Sale Mastery Workshop”
- 2010 NAR’s Realtor’s Short Sale and Foreclosure Resource Designation Completed NAR’s only short sale an foreclosure resource program
- 2010 Certified HAFA Specialist Designation Certification intensive 14 module class on Treasury’s Short Sale Program
Forth Hoyt has become one of the Sacramento area’s premier real estate agents, and a Sacramento short sale and pre-foreclosure specialist. Through his devotion to learning, his work ethic and tenacity and eleven years of Sacramento area Real Estate Experience and hundreds of transactions, Forth has the knowledge and background to provide you with a winning real estate experience!
CRS, CDPE, PFC, IMSD, Certified HAFA Specialist,
RDCPro, A-REO, SFR, SRES, e-PRO, Master’s Club
Certified Pre-Foreclosure Specialist
Short Sale And Foreclosure Resource Designation
The National Association of Realtors
Only Short Sales and Foreclosure Resource Program
| Discussion: 2 Comments »
How Will The Market Respond When California’s New Anti Deficiency Law Goes Into Effect?
November 21st, 2010 Categories: Default News, Foreclosure News, Short Sales
California's Newest Short Sale Anti Deficiency Law Will Save Many Homeowners From Deficiency Judgments
Sacramento Short Sale Specialist and Certified Short Sale Negotiator Forth Hoyt reports on California’s newest anti deficiency law for short sellers
SB 931, recently enacted legislation governing “short sales,” goes into effect Jan 1, 2011, The Legislation applies to any note secured by a first deed of trust or first mortgage for a dwelling of not more than four units. SB931 protects Homeowners as well as Investors, as it is not limited to consumer transactions, nor limited to homeowner occupied dwellings.
…it specifically states that it doesn’t matter if the first note or mortgage was refinanced or not, can be for any amount, and is not limited to owner-occupied dwellings.
So SB931 and California Code of Civil Procedure 580e will give Sacramento Short Sellers exactly the same protection to first deeds of trust and first mortgages.
When this happens, Short Sales in Sacramento will surely increase- no more will homeowners and investors be told by their attorneys to “just let it go back to the bank”. You see, in the past, if a loan was not “purchase money” the law stated that in a short sale, the bank had the right to pursue a deficiency judgement for the amount the bank lost: the amount between the short sale and the amount owed. If the home went to foreclosure, there was no such risk…
Questions on your particular situation?
Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
Questions on Why to Short Sale?
Short Sale VS. Foreclosure …Tough Decisions Facing Sacramento Area Homeowners Today
Need information on the newest government anti foreclosure programs?
New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?
| Discussion: No Comments »
SB931 New California Short Sale Law Stops Banks In Their Tracks On First Mortgages
October 7th, 2010 Categories: Default News, Foreclosure News, Short Sales
Short Sales Now Exempt From Anti Deficiency
Stops Deficiency Judgments On All First Mortgages After Short Sale
California SB931, signed October 1, 2010 stops lenders from pursuing deficiency judgments on all first mortgages after short sales in California.
Questions about your particular situation? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center.
In layman’s terms; this new California short sale law means the bank can’t come after you on the amount they were shorted after they agree to a short sale and issue a Short Sale Approval Letter.
New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?
Check out the official Full Text from Around The Capital:
Mortgages: deficiency judgments.
LEGISLATIVE COUNSEL’S DIGEST
SB 931, as amended, Ducheny.
Mortgages: deficiency judgments. Existing law authorizes an action for a deficiency judgment for the balance due upon an obligation for the payment of which a deed of trust or mortgage with power of sale upon real property or any interest therein was given as security, as specified. Existing law prohibits a deficiency judgment in any case in which the real property or an estate for years therein has been sold by the mortgagee or trustee under power of sale contained in the mortgage or deed of trust.
This bill would prohibit a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than 4 units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage. The bill would provide that written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. The bill would specify that those provisions would not limit the ability of the holder of the first deed of trust or first mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any 3rd party for fraud or waste if the trustor or mortgagor commits either fraud with respect to the sale of, or waste with respect to, the real property that secures that deed of trust or mortgage. The bill would make these provisions inapplicable if the trustor or mortgagor is a corporation or political subdivision of the state.
Even If Refinanced; Even If Cash Out! No More Deficiency Judgments After A Short Sale in California On First Mortgages! Whether Refinanced Or Not!
| Discussion: 1 Comment »
Three Distinct HAFA Programs: Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure Update
August 31st, 2010 Categories: 1
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 HAFA. HAFA 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
| Discussion: 1 Comment »
Short Seller’s Newest Anti Deficiency Protection for Sacramento Short Sellers With SB 931
August 24th, 2010 Categories: Default News, Foreclosure News, Short Sales
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.
| Discussion: 2 Comments »
Notice Of Defaults In Sacramento Are Backing Up, But Still Being Postponed
August 16th, 2010 Categories: Foreclosure News, Pre Foreclosures
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
| Discussion: 1 Comment »
