Another Closed Short Sale in Naugatuck CT
Today we finalized the process to help a Naugatuck CT home-owner to avoid foreclosure with the closing of their short sale. A lost job here in Connecticut started the process, and after the savings were gone to keep the house going, a relocation was necessary with the promise of a new job.
Primary Mortgage was with Mellon Bank serviced by Ocwen Loan Servicing.
Second lien Holder was Beneficial Financial
As it was a nice home, well maintained and in a nice secluded location, offers were easy to get. Unfortunately, 2 contracts fell through due to under qualified buyers. Three times is a charm and buyers flew through the process and 45 days after going under contract, we got to the closing table in Naugatuck CT.
The Homeowners Affordable Foreclosure Alternatives, HAFA Act, is a government program designed to help distressed homeowners avoid foreclosure.
Banks do cooperate with a HAFA short sale as they get government cooperation with the deficiency.
This Connecticut home owner was able to participate in a Connecticut HAFA short sale. They were able to sell their house for less than the outstanding mortgage; the program allowed them to get a $3,000 relocation stipend; even though they received a 1099 at the closing, their short sale letter from the banks,stipulated that their deficiency would be waived. This means that they would not owe the banks any additional money, nor would the bank come after then at a later date. The act also provides for no federal tax on the phantom income, which is the difference between the amount owed, and the settlement cost.
This Naugatuck Connecticut home owner was fortunate, as were the new owners of the home. Not all home owners can avoid foreclosure., but doing nothing and waiting is not the right way. We have the expertise to help Connecticut homeowners avoid foreclosure. The HAFA act is good through the end of 2013. No one knows if it will be renewed, so call me now to discuss your situation and your options.
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