Finally, it seems like the "little guy" or the general population is being given a helping hand in the foreclosure/short sale dilema thousands are facing. On the federal level the HAFA (part of the HAMP) program is designed to streamline and simplify the short sale and deeds-in-lieu of foreclosure. The program has some great incentives for borrowers and lenders to find ways to keep people in their homes as well as assistance to help if foreclosure is imminent. The program doesn't take effect until 4/5/2010 but servicers can start participating before then if they meet certain requirements.
On the local level (Colorado) has enacted another bill that will help with the on going foreclosure nightmare that has gripped the market in a bill designed to give additional relief (mostly in the way of deferrment) to property owners striving to remain in their homes. The bill is a must read for all agents working with short sale/deeds-in-lieu/foreclosure properties and clients. Together these two programs give a little more leverage to the borrower, albeit it temporary and forces the servicers into collaborators. Both of these programs are great steps forward and hopefully will help those borrowrers mitigate some of the pain they are feeling during these tough economic times.
Check out these sites for the details.
HOUSE BILL 09-1276
http://www.dola.state.co.us/cdh/foreclosurenotice/documents/1276_enr.pdf
http://www.realtor.org/government_affairs/short_sales_hafa
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