Redding CA Short Sales - HAFA Program Helping Sellers Avoid Foreclosure--Have you recently been working with your bank to do a loan modification under the HAMP (Home Affordable Modification Program)? If you have and you have not been successful, you should qualify to do a HAFA Short Sale (Home Affordable Foreclosure Alternative). The benefits are that it allows you to have some control over the process of transitioning from owning your home to moving into the rental market. You benefit with a $3000 relocation fee when you cooperatively work with the bank to do a HAFA Short Sale. You have a timeline that you can depend on. Waiting to be evited is not a nice experience. There are also incentives for seconds to cooperate with the short sale process.
It becomes critical for you to understand your options and to seek advice on your specific set of circumstances. Contact your professional legal and financial resources to understand all the ramifications of doing a short sale.
Federal Short Sale Guidelines - HAFA - Extension of HAMP - April 5, 2010--National Association of Realtor’s Jeff Lischer, Managing Director for Regulatory Policy
Mr. Lischer provides for us the new Obama Treasury Departments HAFA Short Sale Program. NAR has put forth a huge effort to help agents and homeowners stream line the Short Sale process. The National Association of Realtors is our voice in D.C. NAR has kept Realtor’s in the game. NAR has been working hard with the Federal Government and the Major Lenders to come up with standard procedures for Short Sales.
HAMP - Home Affordable Modification Program,
and HAFA - Home Affordable Foreclosure Alternative
The Overview
- Mortgage loan is a first lien mortgage originated on or before January 1, 2009
- Mortgage is delinquent or default is reasonably foreseeable
- The current unpaid principal balance is equal to or less than $729,750
- The Borrower's total monthly mortgage payment exceeds 31% of the borrower's gross income
Incentives
- Seller to receive $1,500 for relocation (latest news is that may increase to $3000)
- Servicer to receive $1000 for approval of the short sale.
- Servicer will also receive up to $2,000 for allowing $6,000 to the second lien with a 6% cap. No payments allowed by Borrower or Agent. 2nd cannot go after Borrower for judgment deficiency.
Participating Banks
- Program is voluntary
- Over 100 banks are participating with HAMP and expected to participate in HAFA
- Bank of America
- Wells Fargo
- CitiMortgage
- Chase
Standardized Forms are Required (More Complicated)
- Servicer fills out the Short Sale Agreement
- Sends the Short Sale Agreement to the Borrower
- Borrower and Real Estate Agent Review
- If Borrower and Real Estate Agent find the Short Sale Agreement Acceptable, they sign it.
- Listing Broker not party to the Short Sale Agreement, but acknowledged as listing Broker.
- Listing Broker acknowledged review of the Short Sale Agreement and agrees to the Short Sale Agreement Controls.
- Listing Broker further understands that all offers will be presented with a RASS form.
Commissions
- Currently the amount of commission is to be filled in by the Servicer.
- NAR expects this to be changed and the 6% commission protected.
Marketing
- Marketing Period to be 120 days.
- If not sold within that period, Borrower and Agent to provide supporting marketing and analysis to extend.
- Listing can be extended for up to 1 year.
Offers
- Offers must be submitted with a RASS form.
- Buyer's proof of ability to perform must accompany the RASS form and offer.
- Servicer has 10 days to approve or disapprove. NAR's position on this is that the Servicers may not be able to comply with this guideline.
- If the Servicer does disapprove the Short Sale offer, they must tell you why.
- Closing to be a 45 day escrow.
There is an alternative to this process and it is called an Alternative RASS (more like the traditional SS process we currently do). You present the offer to the Servicer with a RASS form. You will not, however know what the bank is willing to accept.
Federal Short Sale Guidelines - HAFA - Extension of HAMP - April 5, 2010--The NAR video is below for you to watch. I tried to take good notes...but you should watch it for your own knowledge-base. My interpretation on these guidelines is that we will still need to used the same skill set we currently use to help the Servicer understand market value and the local landscape as to we move properties quickly.
I am Jeanean Gendron, your Redding and Shasta County Specialist. I specialize in helping Sellers facing hardship and foreclosure. I have 100% approval rating on my short sales and received approval on all my short sales to date. I have the following training designations.
I am Jeanean Gendron your Redding and Shasta County Specialist. You can reach me at 530 276-7417.
I am HAFA Certified!
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