What about the Mortgage Insurance companies?
We 
have all been hearing a tremendous amount of hype about the new HAFA regulations and I believe they are a step in the right direction, but I don't believe they address the Mortgage Insurance industry or the investors behind the mortgage. All the emphasis was put on the lender or servicer and when we have mortgage insurance in the mix we have a whole new problem which can kill the short sale. The new HAFA regulations sound good but if the mortgage insurance company and the investor do not have to follow the rules or refuse to go by the guidelines, how many of these short sales are going to be done smoother and faster than in the past?
I love the idea and the theory behind the Home Affordable Foreclosure Alternative program but I can't help but wonder how much real impact it will have in clearing these homes destined to go to the foreclosure block? The bank may very well want to follow the guidelines but the mortgage insurance company and the investor behind the loan may not. Unless we get all involved to get on board, these guidelines will do nothing to reduce the number of foreclosures going through the court systems right now.
Now for those of you who did not see the 60 Minute's episode last week, along with all the foreclosures in the system from legitimate home owners that have had a definitive hardship or life changing event, we have a growing number of home owners who can afford to pay their mortgages and refuse to because of the return on their investment. These numbers could topple the whole real estate recovery, if there ever was one to begin with.
Now I know this all sounds a little negative and I don't want to be, but I think we need to address the foreclosure problem with some legitimate solutions that can produce some real results to get these homes off the market and I'm not sure HAFA is going to do this. Maybe if we but some bite in to the guideline to get these investors and mortgage insurance companies participate with some real penalties for not following than we might see some results.
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