hafa: Does the house go away if I surrender it in bankruptcy? - 05/27/11 04:32 PM
When a borrower “surrenders” a property in a bankruptcy, the ownership doesn’t automatically revert to the bank.
“Surrender” means you are declaring that you do not intend to keep the property. The house and the liability of ownership remain with you, the owner, until you get rid of your ownership. Ask your bankruptcy lawyer exactly what "surrender" means.
How Do I Get Rid Of Ownership?
The house needs to be sold to a new buyer, or get foreclosed upon or conveyed by deed-in-lieu to the lender.
But I thought the bank takes the house in the bankruptcy...
It is a common misconception that the house somehow … (2 comments)

hafa: Should I Rent My House Out To Avoid Foreclosure? Great Risks, Few Benefits - 10/02/10 05:04 AM
When financial hardship strikes, the natural instinct is to save your home, for many reasons:
You want to meet your obligations and fulfill your promises Your family lives in the home You want to move when it fits your life plan You put a lot of planning, time and money into the house You want to avoid the stress and embarrassment of a foreclosure One of the ways to make the payments affordable and stay in the home is a loan modification. In an ideal loan mod the bank lowers your interest rate and lowers your payment.
If the loan modification … (3 comments)

hafa: Will There Be a Housing Recovery or an Attitude Adjustment to a Market that Reset Itself? - 09/19/10 05:11 PM
Hundreds of housing predictions flow into the airwaves and the bandwidth every day. Government, universities and financial reporters all have their opinion of the day. The National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA) have their predictions, too.
However, the market is now under the influence of many programs:
HAMP and non-HAMP loan modifications HAFA Short Refi Fallout from the expired $8,000 tax credit program A variety of incentives and deterrents from FHA, FNMA and Freddie Mac These are just a sample of foreclosure avoidance experimental programs from the last 12 months. The government and the banks have … (5 comments)

hafa: Intriguing Legal Question About HAFA Short Sale $3,000 Incentive While In Bankruptcy - 09/19/10 03:33 AM
 
Do the sellers keep the $3,000 or do the creditors get it?
Sellers are in Chapter 13 Bankruptcy. We are submitting their short sale as a HAFA short sale. If the HAFA short sale is approved, the lender will provide a $3,000 relocation assistance incentive to the seller. My question is:
Will the sellers be able to keep the $3,000 now or will the bankruptcy court distribute it to the creditors?
Note: There is a concept called Homestead Exemption, but since I’m not a lawyer I don’t know if it applies.
Here's a link to bankruptcy exemptions
I am always … (1 comments)

hafa: Half a Short Sale? Or, HAFA Short Sale? - 09/05/10 02:16 AM
 
The phrase SHORT SALE makes no intuitive sense to the typical home seller. Now they hear there’s a new program: HALF A SHORT SALE
The initial phone conversation goes like this:
 
SELLER: I owe more than the house is worth. I want a quick sale.
REALTOR: You mean a short sale?
SELLER: As long as it’s quick.
REALTOR: A short sale isn’t short. It takes a long time.
SELLER: Huh?
REALTOR: But, you may qualify for a HAFA short sale.
SELLER: I don’t want half a short sale. I want a full short sale.
REALTOR: Huh?
For further illumination … (5 comments)

hafa: Louisville Short Sales Q&A: Can the Seller Get Any Money Out of A Short Sale? - 08/30/10 12:21 PM
Can the seller get any money out of a short sale?
FHA and participating HAFA lenders actually give sellers “cash” incentives for completing a short sale. The seller gets a check in the amount of the approved incentive.
FHA Cash Incentive to Short Sale Sellers
If the loan that is being approved for a short sale is an FHA loan, the seller may receive up to $1,000 from HUD. HUD is the acronym for Housing and Urban Development.
The HUD guidelines state as follows: (The word “mortgagor” refers to the borrower who is selling the house)
“HUD will pay up to … (0 comments)

hafa: Short Sales: "If you don't know where you are going, any road will get you there" - Lewis Carrol, 1865, Alice in Wonderland - 08/27/10 05:18 AM
When saving a client from foreclosure there can be many outcomes. The short sale Realtor must have a goal and a well defined strategy from the outset.
Amazingly, about 150 years ago, Lewis Carrol penned the classic Alice in Wonderland with the following dialogue that is so relevant today:
“Which road do I take?" (Alice)
"Where do you want to go?"
"I don't know," Alice answered.
"Then, said the cat, it doesn't matter.”
“If you don't know where you are going, any road will get you there.” (Cheshire Cat)
How relevant this is to short sales 150 years later!
The seller … (0 comments)

hafa: Caution: Moving Out Of Your Home In a Short Sale May Cost You Tens Of Thousands Of Dollars - 08/26/10 11:43 PM
This is a little known fact and an alarming truth. There is a natural tendency to flee the house ahead of the foreclosure storm. However, vacating the house may invalidate the seller’s eligibility to have the shortfall on their debt wiped out forever.
OK, so what does that mean?
Step by step:
A short sale happens when the lender allows the seller to sell the house for an amount short of the amount owed. The difference between the total amount owed and what the lender gets when the house sells is called “shortage”, “shortfall” or “deficiency”. In an ideal short sale, … (6 comments)

hafa: HAFA short sale. Seller moved out prior to starting short sale. Advice needed! - 08/20/10 01:13 PM
 
Seller got served with foreclosure notice, assumed that he needs to move. He moved 40 miles to a relative's house. In the meantime leased the house that's in foreclosure on month to month for survival money.
 
Does anyone know if this affects his HAFA eligibility? It's a FNMA loan.
 
The seller can move back if he needs to.
 
HAFA has a rule about relocating at least 100 miles for work purposes.
 
Any illumination will be appreciated. There just aren't enough case studies to go on yet.
 
Thanks
Dave Halpern
Louisville
(502) 664-7827
 
 
… (3 comments)

hafa: Turned Down for Loan Modification in Louisville, KY? Try HAFA Short Sale - 07/24/10 03:56 AM
Did your loan modification get turned down? Did the bank say you make too much money? Not enough money?
How about this:
Did your lender deny a loan modification that you didn't even request?
Or this:
Did the bank approve your loan mod but you don't want it because the bank only lowered your payment by 20 bucks?
There are solutions to avoid foreclosure:
All these scenarios are playing out in millions of households across the nation.
If the house payment is draining you and bringing financial disaster, and you owe more than the house is worth, it is time to … (3 comments)

hafa: HAFA Short Sale - Consumer Friendly Brochure - 07/06/10 05:36 PM
Need a consumer friendly overview of HAFA short sales?
The National Association of Realtors (NAR) has published an easy to understand brochure about the Home Affordable Foerclosure Alternatives (HAFA).
The brochure covers:
Benefits of HAFA HAFA Eligibility HAFA Process Useful Links Here's the link to the brochure: Worried About Foreclosure? HAFA May Be Able To Help
The two greatest benefits of a HAFA Short Sale are forgiveness of the deficiency and granting a $3,000 cash incentive to the seller.
Hopefully this post and the linked document will help Realtors simplify the explanation of this important option available to homeowners who need debt … (5 comments)

hafa: HAFA Guidelines - Going To The Source Document For Answers - 07/06/10 03:02 PM
If you're doing any short sales at all you're running into questions about HAFA. If no one seems to know the answer, how about going to the actual source document?
"Home Affordable Foreclosure Alternatives - Short Sale and Deed-in-Lieu of Foreclosure Update, Supplemental Directive 09-09 Revised March 26, 2010" is a good place to start.
Here's the link: https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf
Yup, it's 45 pages long. It's not the most interesting read but mastering it is vital to becoming an expert on the subject. We are representing sellers in what is one of the most critical financial dilemmas they will face. Media and … (1 comments)

hafa: HAFA Short Sales - Benefits to the Seller - 07/05/10 03:06 AM
One of the biggest concerns sellers have is the threat of having to stay obligated on the deficiency in a short sale.
If the seller qualifies for a HAFA short sale that problem is solved.
Let's back up for a minute and explain. A short sale is when the lender accepts an amount short of the full payoff. That shortage is called a deficiency, and many lenders refuse to specify in the terms of the short sale that they will waive their right to pursue the seller for the deficiency.
On April 5, 2010, the government and many lenders announced the … (8 comments)

hafa: The Importance of Using a Short Sale Expert - 05/09/10 04:37 PM
By David Halpern, Louisville Short Sale Expert, (502) 664-7827 and (502) 895-3100
In my city alone there are hundreds, maybe thousands, of homeowners who unnecessarily lose their homes to foreclosure each year who could have avoided it if their Realtor would have successfully procured a short sale.
Even a highly trained short sale expert cannot stop a bank from defeating itself and not every short sale will get to closing. But it is the Realtor's responsibility to diligently and methodically go through the dozens of extra steps that don't exist in a traditional listing.
With the introduction of HAFA short sales the … (3 comments)

hafa: HAFA orientation video from NAR - National Association of Realtors - 04/20/10 10:56 AM
Here's a link to an overview VIDEO of the new HAFA short sales rules that went into effect on April 5, 2010: http://link.brightcove.com/services/player/bcpid1465406675?bctid=75779465001
If you are "upside down" on your mortgage in Louisville, KY you should seriously consider a short sale. In a short sale, your lender accepts an amount short of what you owe them. It is important that you select a Realtor who has successfully completed dozens of short sales. Your Realtor should also be current on the changing government and banking industry rules related to short sales.
There is still much confusion about the new HAFA rules. I will continue to present … (0 comments)

hafa: The Reality About HAFA Is No One Knows What the Reality Is Yet - 04/17/10 03:25 AM
As of the writing of this blog post on April 17, 2010, the reality of HAFA is that no one knows what the reality is yet. It's simply too early to know how lenders and upside down borrowers will respond. Both lenders and borrowers have strict timelines but great latitude in the quality of answers they have to provide within those timelines.
It will probably take at least two to three months to determine the effectiveness of the HAFA program and how many borrowers in foreclosure and lenders will be helped.
All the Realtors, lawyers and loss mitigators can recite the … (0 comments)