Texas Short Sale » Government programs

Fannie and Freddie to join HAFA Program

admin — Mon, 02 Aug 2010 14:55:37 +0000

August 1 is the start of a new government program for what looks like all conforming loans. Until now the HAFA program was limited to only nonconforming primary residence loans. Now the conforming loan segment has entered the HAFA arena. It is supposed to be similiar to the original HAFA program, with a few minor changes. This could open a whole new variety of options for homeowners trying to short sale their homes. While HAFA may not fit everyone’s needs to sell, it may be a perfect fit for others. If you or someone you know owe more on your home than it is worth, and don’t know what to do, get in touch with me and lets discuss your options.

mark@texas-short-sale.com
214-586-8685

Fannie Adds Incentive to Avoid Foreclosure for future Texas buyers

admin — Mon, 03 May 2010 17:02:38 +0000

Beginning in July, Fannie Mae will allow financially troubled home owners to complete a “deed in lieu of foreclosure” or a short sale and be eligible to apply for a new Fannie-backed mortgage in two years.

Currently, borrowers who have completed a deed-in-lieu must wait four years to apply for a loan that Fannie will purchase. Home buyers who go through foreclosure must wait five years.

All these waiting periods can be reduced further, if the potential buyer can show extenuating circumstances. “We are beginning to think about post-recession, how you address borrowers who became unemployed through no fault of their own … and now deserve the right to re-enter the housing-finance system,” said Federal Housing Association Commissioner David Stevens.

Source: The Wall Street Journal, Nick Timiraos (04/26/2010)

Updated HAFA guidelines for Dallas Short Sales

admin — Fri, 30 Apr 2010 19:23:23 +0000

Here are updated guidelines as of March 2010. I’m sure this s not the last of changes or updates going forward.

 Servicers who wish to participate must complete their applications by 10/03/2010 (was 12/31/2009)

 Latest “Supplemental Directive” was issued 03/26/2010 (was 11/30/2009)

 Added evaluation criteria:
Property may be vacant 90 days prior to the short sale agreement (SSA) date IF a borrower was relocated more than 100 miles by their employer. A borrower in Chapter 7 or 13 bankruptcy must also be considered for HAFA if directed by the trustee.

 Incentives:
Borrower $3,000 (was $1,500)
Servicer $1,500 (was $1,000)
Investor $2,000 (was $1,000)

 Junior lien negotiations
Up to 6 percent of the total indebtedness, not to exceed $6,000 total (was 3 percent and $3,000).

New HAFA Short Sale Regulations affect Dallas preforeclosures

admin — Wed, 28 Apr 2010 21:46:00 +0000

What do these new short sale guidelines mean to you? The new federal push provides lenders with financial incentives to accelerate the short sale process — $1,500 for servicers to cover administrative costs and up to $2,000 for investors, according to the National Association of Realtors.
Still the guidelines are voluntary, and to be eligible a homeowner must of taken out their primary mortgage before January 2009 and owe less than $729,750, among other requirements.
Here are some highlights of the program provided by Goldie Sommer, a Fairfield attorney who specializes in short sales:
- Every potentially eligible homeowner must be considered for HAFA by a participating lender before the loan is referred to foreclosure.
-The lender can’t require a cash contribution from the homeowner, nor can the lender require that the owner sign a promissory note at the closing.
- The lender can’t go after a borrower for a “deficiency judgement,” or the difference between how much a home sold for and the amount owed.
- Under the guidelines, the borrower can receive up to $1,500 to help
with relocation costs.
- The guidelines also force participating lenders to give borrowers standardized forms, processes and deadlines.
- The homeowner may now receive pre-approved short sale terms prior to the property being listed. That means a lender would have to tell a borrower the minimum amount they’d accept on a short sale.
- Additionally, if the short sale doesn’t go through, the program outlines rules for deed-in-lieu-of-foreclosure agreements — in which an owner agrees to hand over their homes to their bank. Just as with the short sale, the servicer can’t request any cash from the homeowner, require a promissory note or pursue any deficiency judgments.

This is an overview of the program. We will expand on this in future posts.

Streamlined Short Sales

admin — Fri, 25 Sep 2009 18:19:15 +0000

There has been allot of rumors out there the treasury will step in to either take over or mandate a response time for servicing companies to respond to short sale offers. There is talk that there will be a required 21 day response time either by acceptance, rejection or counter to the seller. Supposedly there will be an announcement about this by month end. The banks has come to the realization that they can minimize their loss through a short sale instead of a foreclosure. This may be a trend, moving to short sales instead of taking the property to foreclosure. The current administration has already put into place a loan modification program to keep people in their homes, which has been somewhat successful. Bottom line, reducing the number of foreclosures will help create confidence in buying and also stimulate the housing market to recover.

HOA dues and Short Sales….oil and water

admin — Thu, 23 Jul 2009 01:23:46 +0000

Recently I had the opportunity to negoiate a short sale that had past due HOA payments. The payments were over a year behind and the association had put liens on the property. Two weeks before closing the homeowner received a foreclosure letter stating the HOA was foreclosing next month.

I was never so frustrated that the HOA “board” demanded full payment. After every party involved in this transaction made monetary concessions to work together to a reasonable close, the HOA would not budge.

What I have learned is that in certain instances like this, the HOA would be the first paid at the sale. Even before the first mortgage. They have nothing to lose. They always get paid.

Point being, when HOA liens are present and they have filed to foreclose, get the sellers lender and the other parties to absorb the HOA blood money!

Obama’s new Foreclosure Alternatives Program coming soon!

admin — Tue, 14 Jul 2009 18:07:59 +0000

On May 14, 2009, the Obama Administration announced its upcoming Foreclosure Alternatives Program. Among other things, the new program:

Establishes financial incentives for servicers, sellers, and second lien holders to encourage the completion of short-sale transactions.
Requires that a timeline, of no fewer than 90 days, be set to allow a homeowner to sell a home, without threat of foreclosure action.
Requires the short sale agreement to specify reasonable and customary real estate commissions and costs to be deducted from the sales prices. (The servicer must agree not to negotiate a lower commission after receiving an offer.)
Will provide standardized documents, including short-sale agreements and offer acceptance letters.

The Foreclosure Alternatives Program is anticipated to launch in late July.