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Short Sales are Changing

By Jennifer James

Real Estate Agent with Hometown Realty

March 02, 2010 01:15 AM

Short sales are changing

The current Short Sale process is undefined and drawn out. The number of homes listed as pending or under contract is influenced by the number of sellers waiting for an approval from the lien holder. Short sales are challenging and take time (months) I have sold 20 short sale properties in the past 2 years and every bank and process was different. One tip is to be very organized and ask for what you want and find out who can provide answers.

The process is getting ready to change...I am excited about this change and hope this will reduce the pressure on all parties.

The new rules will have a time line...not the current estimate or the never ending...I need two more weeks for the file to marinate on my desk..The banks must approve or deny in 10 DAYS!

The Banks, the mortgage investors, the second mortgage holders and the sellers all will receive financial incentives. This is great news...

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Diane Osowiecki

Diane O and Friends - Benchmark Realty - Franklin, TN

Greater Nashville Real Estate

Believe it when I see it. Who is in charge of monitoring this new process?

Mar 02, 2010 01:19 AM

Greg Kobylenski

RE/MAX Lakeshore - Holland, MI

I hope they change things soon. I have one that has been pending since June with no end in sight.

Holland Michigan Real Estate | West Michigan Foreclosures | Holland Michigan Home Values

Mar 02, 2010 01:20 AM

Victoria Lawrence

Solutions Real Estate - Mesa, AZ

Realtor Solutions Real Estate

It would be nice if that were true....I agree with Diane on this one. Show me!

Mar 02, 2010 01:27 AM

Shanna Hall

Real Estate Solutions - Kirkwood, MO

I love selling houses!!!St. Louis, MO 314-703-1311

When ar ethe new rules suposed to be put int place? I would love to se e a 10 day turn around...

Mar 02, 2010 01:30 AM

Jennifer James

Hometown Realty - Mechanicsville, VA

Here is the link for the actual documents:

https://www.hmpadmin.co/portal/index.html

Look under the Home Affordable Foreclosure Alternatives

Program: Overview

The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or deed-in-lieu.

With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.

HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.

The guidelines for HAFA are detailed further on the site...

Mar 02, 2010 07:44 AM

Ben Benita

Ben Benita - Gainesville, VA

Speaker, Author, Game Changer, Coach

HAFA is a TRAIN wreck and will only grease the wheels of the impending real esate fall out. The 10 day rule, that starts when they get your documents.....good thing they never lose documents. Also, for the HAFA program, owners are required to make payments DURING the short sale process....again, train wreck. Keep in mind who you deal with for short sales are known as the "Servicers", they get paid to service the notes and actually get paid LARGER servicing fees when owners are delinquent on payments.....where exactly is there motivation to get these done quickly.....my 2 cents, more government BS.....looks good on paper, does not work in the short sale trenches....all my best to everyone and their clients. Ben Benita, www.bestshortsaleservice.com

Mar 09, 2010 01:44 PM

Short Sales are Changing

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