HAMP Supplemental Directive 09-09 A Game-changer?

Real Estate Agent with Berkshire Hathaway Home Services Montana Properties

At first blush, the Home Affordable Foreclosure Alternatives (HAFA) Program Supplemental Directive 09-09 appears to be a game-changer in the hotly-contested battle raging between distressed homesellers, their real estate representatives and mortgage servicing entities.

As part of the Home Affordable Modification Program (HAMP), HAFA will provide financial incentives to servicers and borrowers who elect a short sale or deed-in-lieu to avoid foreclosure.

The new directive will become effective April 5, 2010, according to a press release attributed to the HAMP Support Center. 

Key elements to the directive include prohibiting the servicer fromr reducing real estate commissions beyond the agreed rate reflected in the original listing agreement as a condition for approving the short sale.  It also requires servicers to respond to a submitted offer within 10 days of receipt and, most importantly, for qualifying borrowers with qualifying loans, requires lenders to fully release borrowers from future liability for the debt. 

This is huge!  The directive also provides for a $1,000.00 servicer incentive and $1500.00 seller moving expense incentive. 

See a copy of the directive at HMPadmin.com

It appears, at last, the administration has provided a means to begin to unplug the system.  Your thoughts?


Comments (3)

Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Hello Dennis, I read about this earlier today and thought it was too good to be true. It cannot come soon enough. But on the other hand, someone commented on one of my posts that they heard short sale agents will have to be "approved". Interesting. One hand giveth while the other taketh away.


Dec 03, 2009 09:50 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

I'm not holding my breath.  What does respond to offers within 10 days of receipt mean?  You can call the bank now after 10 days and they will say "Yes we have it" but it doesn't mean you have approval.  If they say it must be approved or denied within 10 days NOW that would be something to get excited about!

Dec 03, 2009 10:26 AM
Jason Rivera

To hopefully answer your question...late.

Approval or Disapproval of Sale. Within ten business days of receipt of the RASS and all
required attachments, the servicer must indicate its approval or disapproval of the proposed sale
by signing the appropriate section of the RASS and mailing it to the borrower.

Feb 16, 2010 07:35 AM