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Phoenix Short Experts see rise in clientele - Loan Modifications Not Working

Via Amy Gerrish, Realtor, Phoenix,San Tan Valley (HomeSmart Real Estate):

More than 1/2 of the Arizona residents that applied for loan modifications through Home Affordable Mortgage Program (HAMP) did not get their payments permanently lowered. Many of the Phoenix trial loan modifications were stopped and some borrowers were required to make up the difference between the lower payment and their regular payment. This left borrowers with financial hardships facing foreclosure.  At this point, their options were to simply walk away and foreclose or hire an expert and short sale. Working with their lender was no longer an option.

Phoenix Short Sale experts have seen an increase in the amount of homeowners coming to them for help. Many of the failed HAMP homeowners were able to switch to the other Federal Program HAFA.   This program is for homeowners who: 1. do not qualify for a trial mortgage modification under the Making Home Affordable Program; 2. do not successfully complete the trial period for their modification; 3. miss at least two consecutive payments during their modification period; or 4. request a short sale or deed-in-lieu of foreclosure. Some of the sellers qualify for a relocation benefit at closing, up to $3000. A family San Tan Valley who used a Phoenix Short Sale Expert recently qualified for a $2500 relocation benefit. This amount was paid to them when the house closed. They received the check directly from the title company at closing.

Excerpt From the HAFA Brochure:

HAFA is available for homeowners who have a
verifiable financial hardship and:
• Do not qualify for a mortgage modification
under the Making Home Affordable Program;
• Do not successfully complete the trial period
for their modification;
• Miss at least two consecutive payments once in
a permanent modification; or
• Request a short sale or deed-in-lieu of
foreclosure.
Your mortgage servicer can give you more
information about your eligibility.
Other Loans
If you have other loans against your house,
you will need to work with your servicer to
negotiate the release of those loans in order to
complete the short sale or deed-in-lieu. HAFA
helps by providing some funds to pay off
junior loans.
HAFA Timeline
Unlike the process for many short sales and
deeds-in-lieu of foreclosure, HAFA sets clear
timelines to keep the process efficient.
Mortgage servicers must evaluate
homeowners for HAFA within 30 days after
one of the eligibility criteria is met. If the
homeowner is eligible, the servicer will send
a Short Sale Agreement (SSA)—a contract
between the homeowner and the servicer—
that will include:
• A list price approved by the servicer;
• The length of time the property will be
marketed for sale;
• An agreement releasing the homeowner from
all future liability after the property is sold;
• The amount of the monthly mortgage
payment, if any, that the borrower will be
required to pay during the term of the SSA;
• Information about $3,000 in relocation
assistance after closing; and
• An agreement that so long as the borrower
performs in accordance with the terms of the SSA,
the servicer will not complete a foreclosure sale.
If a servicer is willing to accept a deed-in-lieu of
foreclosure, they will provide a HAFA deed-inlieu
agreement.

 

Amy Gerrish
The Phoenix Metro Group
Brokered by Homesmart
Cell: 480-294-8680
Phone: 866-602-4601
Fax: 602-710-2057
http://www.Phoenix-Metro.com