HAFA Update Effective February 1, 2011

By
Real Estate Agent with Century 21 Wright 01235358/ 01240571

The Home Affordable Foreclosure Alternatives (HAFA) program will continue to grow and change as the market conditions change.   It's very important for Real Estate Professionals to stay on top of these changes to help their clients through potential loan modifications and short sales if and when the client deems them a necessary course of action.

HAFA Cerification Logo

In December 2010 a handbook  was issued by the Treasury (version 3.0) for Servicers of Non GSE Mortgages.  This means the program that details the HAFA guidelines specifically for loans that are not owned or guaranteed by Fannie Mae or Freddie Mac (they have their own guidelines).  It also specifically applies to Loan Servicers that have signed a HAFA participation agreement (which includes 90%+ of the loans in effect).

The changes to this handbook are here Supplemental Directive effective February 1, 2011

One of the most interesting changes to me is that they are withdrawing the requirement for the mortgage payments to be more than 31% of the Borrower's monthly income.

What do you find interesting?  How do you think this will effect your dealings with the HAFA program?

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Tarbell, Realtors Group
Legal Aspects of Short Sales, Foreclosures, Loan Mods
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Rainer
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Paddy Deighan JD PhD
TimeshareLawyers.pro - Vail, CO
Paddy Deighan J.D. Ph.D

Unfortunately, it may not help much because it is becoming harder and harder to get any meaningful modifications and the reasons are becoming less and less valid. I posted a blog about the reasons most loan mods fail (I have worked as a managing attorney for a large network)

Jan 21, 2011 06:42 PM #1
Rainer
80,813
Gary & April Greer
Century 21 Wright - Temecula, CA
Real Estate Professionals

I am remaining somewhat optimistic about loan modifications.  We have had a close family friend and an old neighbor able to negotiate permanent loan mods and both had significant principal reductions (150k and 100k).  Of course that's 2 out of dozens of situations in my immediate circle.  And generally speaking the principal reduction is not enough to correct loan/value ratios but it is enabling them to stay in their homes and that was what they really desired to do.

 

Jan 22, 2011 02:13 PM #2
Anonymous
Tommy Hooks

I notified my congressman after 1 1/2 years of attempts to get my loan modified and within 24 hours received an approval into the trail payments program. I have completed the trial program previously but did not receive any type modification approval. When I contacted the lender the processor could not find my record of payments. The lender later lost my file and also declined my at one point stating I did not have sufficient income. The  income amount they used was understated, and to this day, no one has any idea where the income figures came from. I can only assume someone was in the process of putting together my package and was distracted to the point they forgot to complete the income amounts I had sent in. 

I did not call and request the making homes affordable program. The making homes affordable program was offered to my by my lender back in 2009. I was preapproved over the phone. I spent possibly 1 1/2 hours faxing bank statements, tax records, income tax records, and payroll verification to the lender. The lender neglected to tell me that my credit would be ruined in the process and I would not be able to get free of the program once I started because of the lenders reporting to the credit bureau negative information concerning my home loan. At the time I was offered the making homes affordable program I had not been late nor had I missed a payment. I contacted my lender due a change in my employeement and health problems that had just surfaced. I would hope that congress does a complete investigation as to the handling of the making homes affordable program and to the delays in processing the loans. Many familes that were entitled to the loans have been declined. My personal loan experience makes me question, who is suppose to be in charge of these programs from the Obama administration, and what is really going on with the government money, and the banks that received the money to "prop up the country" and "get things moving again?" It appears to me the banks holding onto that money, while taking possession of millions of private family homes they will resell or rent to anyone that will pay. 

Jun 30, 2011 11:00 AM #3
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Rainer
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Gary & April Greer

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