Did Short Sales Just Get Easier ??

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

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 - 

Posted by

If you or someone you know is thinking of buying or selling a home have them give me a call .. we will get it done ...right 

Eric Reid 

Associate Broker

Keller Williams Atlatna Partners
Team Leader 
Renaissance Realty Group

Comments (5)

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.

Lou Ludwig

Jan 08, 2011 09:45 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.

Lou Ludwig

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