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Did Short Sales Just Get Easier ??

By Eric Reid

Real Estate Agent with Renaissance Realty Group of Keller Williams Atlanta Partners

January 08, 2011 07:27 AM

Welcome to 2011,

Changing Short Sale Rules - The HAFA program has been a mixed bag, but last week the Treasury Dept. changed the rules to make short sales easier.

Here are the primary changes to HAFA: -

HAFA no longer requires that servicers verify the borrowers finances
HAFA no longer requires servicers to determine if the borrowers monthly payment is higher than a 31 percent debt-to-income ratio.
HAFA no longer requires second-lien holders to agree to accept 6 percent of the unpaid principal balance owed them, up to $6,000. Servicers now decide who gets paid how much, with a cap still at $6000.
HAFA now requires borrowers seeking a short sale get an answer/agreement within 30 days.

Overall, these changes should help expedite short sales, which is good news for home owners, realtors, investors and ultimately the banks.

No longer required is a verification of borrowers' finances and DTI ratio. a "hardship affidavit," is still required but finical records are not required as part of the Hardship Affidavit

If you need advice on Sell Your Home Give Me a Call -

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Lori Bowers

La Quinta, CA

The Lori Bowers Group

Thanks for the update. Now to just get the banks to accept the offers in a timely manner. We will see.

Jan 08, 2011 07:29 AM

Teresa Tedder

Carolina Realty of Wilkes Inc - Wilkesboro, NC

wow! that is excellent information! when does this take affect?

Jan 08, 2011 07:33 AM

Lou Ludwig

Ludwig & Associates - Boca Raton, FL

Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Eric

Thanks for sharing the information, anything that makes short sales easier is a step in the right direction.

Good luck and success.

Jan 08, 2011 09:45 AM

Trent Chapman

Keller Williams -New Future Team - San Marcos, CA

I don't see many banks 'liking' the new guideline that you don't have to verify financials. I mean, who made up the 'rule' that a client had to submit financials in order to get approved for a short sale?? ...banks did. Who wants to see if they can collect more money from the seller via their financials?? ...banks do. So, although HAFA took a step in the right direction with the "12 months since primary residence occupancy" and the elimination of the cap of 6% of UPB for second liens, I still feel it will not be more than 1 in 10 short sales that actually work with the program. See here for my explanation why.

Teresa, this takes affect 2/1/11.

Trent

TheShortSaleGenius.com

Jan 08, 2011 10:10 AM

Did Short Sales Just Get Easier ??

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