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VA Short Sale Help in Seattle, Tacoma and Washington State and BIG changes to HAFA 2012

By John Cameron

Real Estate Broker/Owner with VITUS Realty, LLC 18189

May 05, 2012 04:44 AM

2012 is going to be the year of the Short Sale. There is federal Underwater House and state pressure being applied to expedite the process, as well as financial incentive to lenders and help to homeowners whether the loan is VA or not. Regardless of it the property is located in a major metro area like Seattle or Tacoma, or even in Washington State or not. HELP is coming.

Beginning June 7^th a substantial amount of legislative reform is going into effect directly relating to the VA short sale in Seattle, Tacoma and all of Washington State.

· Statute of Limitations for Debt Collection: Most don’t realize that doing a short sale doesn’t necessarily release the homeowner of the debt that’s forgiven, and in some cases, not a VA short sale, the bank has 6 years to collect or sue for the debt to be paid. This time frame in Seattle, Tacoma and Washington State is being reduced to 3 years.

· Foreclosure Fairness Act: Enacted in July of 2011. Substantial modification happening. A drastic increase in the time a short sale seller has to seek mediation from the original only the 30 days after “notice of default” which happens within 30 days of missing a payment, to 20 days AFTER “Notice of Trustee’s Sale.” This should be a great help.

· Deed of Trust Act: An extension for the Washington State homeowner how may be unsuccessful in completing a short sale, be it VA short sale or otherwise, or a Seattle, Tacoma foreclosure will basically be extended another 30 days, and is more favorable for the owner occupant.

A number of big changes for any homeowner thinking of a short sale under the HAFA program.

· Program Deadline: Extended to the end of 2013.

· Owner Occupant Criteria: No longer required to live in the home with the last 12 months to qualify. HUGE help for the VA Short Sale in Seattle, Tacoma and Washington State who so frequently are gone when all this happens.

· Short Sale House Income Verification: No longer required if the seller is more than 60 days past due. A big help for those unable to make their payments.

· Credit Reporting: Negative credit reporting consequences lessened.

· Relocation Assistance: $3000 will be given to sellers occupying the property at the date the short sale is final. Althought not a great benefit for the VA short sale since frequently Seattle, Tacoma VA short sales arise from a PCS. Still this a great help to those staying behind.

· Junior Lein Holders: May receive up to $8500 to release their interest. The VA short sale is often affected by a 2^nd mortgage. Washington State sellers should rejoice.

If you’re a homeowner and need VA Short Sale Help in Seattle, Tacoma and Washington State call or text me John. M Cameron 206-910-0200 or email mailto:johnrockshomes@gmail.com. I’d be happy to help in any way I can.

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