Baltimore Short Sale

Treasury Updates new HAFA Short Sale Guidelines

The United States Treasury has updated the guidelines for the Home Affordable Foreclosure Alternatives (HAFA) program, which helps homeowners who do not qualify for a federal modification and instead offers incentives to servicers, borrowers and investors who opt for a short sale or deed in lieu in order to avoid a foreclosure.

The updated guidelines for the HAFA program enact a new salutation acknowledgment. A servicer must now acknowledge a request for a short sale or deed in lieu within ten business days by sending a written confirmation to the homeowner recognizing the request. The amount of time for an acknowledgment applies to whether the request in response to a notice sent by the servicer in regards to HAFA as an option or is recruited by the borrower.

However, the timeline for a decision has been prolonged to no more than forty-five days from the initiation of the borrowers request for the short sale or deed in lieu.  Within forty-five days the servicer must provide the homeowner with a written approval, denial or a possible alternative once a completed request form, and also a copy of the executed sales contract and supporting documentation regarding subordinate liens is received.

 If for some reason the servicer is unable to comply with responding to the borrower within forty-five days, the servicer must send a written status notice to the homeowner on or before the forty-fifth calendar day, along with written updates for every fifteen calendar days until the a decision is made. Along with the new HAFA guidelines, servicers now have the ability to approve a short sale to nonprofit organizations with a stated purpose that the property will be rented or resold to the homeowner (an option that was once prohibited by the programs “arms length” requirement)

The Treasury’s latest status reports says its foreclosure prevention programs, as of the end of February, 4,488 homeowners have completed a short sale or deed in lieu through the HAFA program while another 10,177 homeowners have open agreements in the works with their servicers at the moment.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you are behind on your mortgage payments and would like to stop foreclosure on your Baltimore Maryland home, Our Maryland short sale Realtors offer no cost assistance for you in your short sale! Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Our services are 100% FREE to you!

Copyright First Coast Realty Associates 2012

CitiMortgage Short Sale Process

CitiMortgage homeowners who are unable to keep their homes are given alternative solutions that can help them avoid foreclosure. The loan modification program includes various options for homeowners who are having difficulties in making home loan payments.

One or two factors of a mortgage loan are changed so borrowers are given the opportunity to pay their mortgage based on a new set of payment guidelines. Loan modification programs aim to help borrowers avoid late fees and penalties while settling their debts accordingly. In some cases, payment due date is rescheduled at a later date to provide leeway for homeowners who are able to make full payments at specific dates during the month.

Most borrowers will request that the due date be moved to days near their respective salary schedules. There are also instances where the total amount due is decreased at a lower rate. This enables borrowers to make timely payments. The only drawback to this loan modification option is that the loan will be extended for a few more months or even years.

When borrowers fail to comply with the new payment set up, a short sale is often the first alternative that crosses the mind of most CitiMortgage homeowners. Giving up a home need not be complicated and difficult. Handing your home back to CitiMortgage is now made less painful and more beneficial with the introduction of the Home Affordable Foreclosure Alternative Program.

HAFA or Home Affordable Foreclosure Alternative Program was recently launched by the federal government with the help of the US Treasury Department. HAFA enables borrowers to follow a standardized and more streamlined short sale process. Instead of late fees and charges, borrowers are given financial incentives for handing over their residential properties in good condition. This financial reward is mostly used by sellers for relocation purposes. Servicers and investors are also awarded with incentives to cover for administrative costs and short sale-related expenses.

What is a short sale?

Basically, a short sale usually happens when a CitiMortgage borrower gets a residential property up for sale for a total sale price that is less than the existing, unpaid balance on the mortgage. The market value of majority of homes depreciates over time, thus making it hard for borrowers to sell their property at a higher asking price. A reduced home value may be caused by various factors. The current physical condition and surroundings of a short sale property is scrutinized to come up with a reasonable asking price.

CitiMortgage loan holders aware of the benefits derived from short sale proceedings. The benefits of opting for a sale instead of letting a property go into foreclosure are:

-CitiMortgage will waive its right to collect deficiency judgment

Once a price has already been agreed upon between a seller and CitiMortgage, no further collection will be conducted after closing period. By agreeing to the terms and conditions under the HAFA short sale process, lending companies lose their power to collect deficiency judgments- that which is the difference between total loan amount and the established asking price.

-CitiMortgage borrowers are given sufficient amount of time to market their properties in public. A total of 120 days are offered to sellers for short sale to proceed. Unless there is a strong, valid reason of a borrower’s inability to make the payment on time, residential properties that are not sold within 120 days become deed-in-lieu foreclosure cases.

-Although a CitiMortgage borrower may experience a not-so-perfect credit rating, a short sale only stays on a homeowner’s credit reports for a few years. Since short sales are considered to be settled mortgage debt, borrowers can apply for another loan once the credit status goes back to normal. Those who have neglected their delinquent mortgage accounts in the past have deep regrets for letting their homes go down as foreclose properties instead. A foreclosure on your credit status will last for many years and may even disable your from applying for home loans in the future.

The goal of short sales is to free homeowners from financial responsibility at a faster rate. Losing a home may be traumatic for some, but with the right mindset it can still become a start of something good and new. A seller’s willingness to give up his or her home will directly reflect the added convenience and hassle that are taken off from a homeowner’s shoulder after a successful short sale process.

CitiMortgage has been reaching out to their customers who are obviously having a hard time in making early, full home loan payments. By doing so, they are able to lower down their losses as well.  Offering a short sale as an ideal solution in settling mortgage debts proves to be an effective way of helping CitiMortgage borrowers in avoiding more financial problems in the future.

Short Sale Guidelines for CitiMortgage Borrowers

For borrowers who are seriously considering a short sale, here are a couple of tips that can help make the selling process faster and more efficient:

-Report financial difficulties immediately to the loss mitigation department of CitiMortgage. They handle all issues related to payment delinquency. They will most likely advice you to go through a short sale if the cause of delinquency is projected to be long term in nature.

-Submit all requirements and documentations that are needed to be approved of short sale in a timely manner. Make sure to fax or send them all the needed forms prior to deadline to avoid processing delays.

-Present an accurate and well-organized hardship letter. In order for the loss mitigation department to approve your short sale request, you must submit a compelling hardship letter that provides all possible reasons of your inability to make timely payments in the future.

-Hiring a real estate agent who specializes in short sale proceedings will make the process much faster and less frustrating to borrowers.  Maryland Short sale specialists are known to establish the lines of communication between borrower and lender, thus making it relatively easy to get an approval from the bank and a buyer right away.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you a Maryland homeowner who wants to stop foreclosure on your Baltimore Maryland home,? Our Maryland short sale Realtors offer no cost assistance for you in your short sale! Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Our services are 100% FREE to you!

Copyright First Coast Realty Associates 2012

HAFA Real Estate Short Sale Rules

Selling your home is now made easy as the government successfully issued real estate short sale rules under HAFA or Home Affordable Foreclosure Alternatives Program. The program aims to encourage homeowners in financial hardship to consider a short sale rather than going down the road of foreclosure. Mortgages that are owned by lending institutions, such as those of Freddie Mac and Fannie Mae are encouraged to adhere to HAFA rules as they benefit all parties that are involved in a short sale process. Some banking institutions have decided to follow HAFA rules as they have realized that accepting short sales is more profitable than foreclosing on properties. HAFA was aimed to streamline the short sale process, making it a more desirable option among homeowners and even lenders.

What is a short sale?

Short sale is a process wherein a homeowner sells his real estate property or home for less than the debt owed against the home. If the current outstanding amount due of a borrower in hardship is more than the prevailing market value of a property, then a short sale is perceived as a more desirable option than other foreclosure alternatives methods.

A short sale is also known as a discounted payoff. Lenders may forgive the lender of the debt and accept the purchase agreement amount and the proceeds from the sale at closing. There are also instances wherein lenders oblige sellers to pay the deficiency, that which is the difference between the amount owed and the actual sale price. However, according to HAFA rules, sellers can be forgiven of their debt while not holding any obligation of paying any deficiency for a property. Instead, the HAFA program aims to incentivize the seller, investor, and even the servicer who helped in facilitating the short sale process.

Who should take advantage of a short sale?

Homeowners in financial hardship who are behind on their mortgage payments or in jeopardy of being in the near future should consider a short sale as a viable option of letting go of a real estate property. If you are a homeowner and you feel that your financial problems will run for a long period of time, it’s best to apply for a short sale instead. Here are a couple of benefits if you decide to short sell rather than choose to foreclose on a property:

• With a short sale, your credit rating will not have to suffer for a long time.

Foreclosures are known to have a negative impact on one’s credit history for as long as ten years. Although a short sale may affect the credit rating of a homeowner, it does not stay too long on record. If you decide to short sell a property, you can already apply for a mortgage or any type of loan with high chances of approval after only two years.

• Homes on short sale are usually in better condition than foreclosed homes

Buyers should take comfort in the fact that properties in a short sale are typically in good condition as sellers are still currently living in the property in most cases. Homes in foreclosure are sometimes those that have been abandoned for a while. If your main aim as a buyer is get much value, it is safer to invest your money on short sale properties instead most of the time. In addition, the HAFA program has even encouraged homeowners to maintain their homes as there is an incentive when they sell the property at a desirable price point.

• More lenders prefer short sales than foreclosures

This fact alone tells homeowners that a short sale is preferred by lenders as they make more profit through this method than foreclosure. More often than not, the processing of foreclosure may be costly, thus encouraging them to approve short sales instead.

If real estate property values are still decreasing, short sale may be a long term solution among those who default on their mortgages. Not only will they find relief from selling their property, they are also given a chance to get right back on track with the incentives that are provided to them after a successful short sale process.

Hire a short sale specialist

All homeowners should seek the expertise of a short sale specialist if they decide to put their real estate property on short sale. The proceedings will be a bit complicated for majority of homeowners to push through by themselves. There are numerous documentations that need to be filled up, and without the supervision of a specialist, a short sale package may not even push through or be outright rejected.

In addition, a short sale specialist will be able to negotiate with your lender by coming up with a desirable selling price with the lender. A good short sale specialist will assist you in convincing a lender to forgive the deficiency on your mortgage debt.

HAFA Rules

Here are some of the basic rules stated under the HAFA program.

• HAFA will enable borrowers to be pre-approved for a short sale. By simply providing lenders with complete documentation, they will determine your eligibility for a short sale in as fast as 10 days.
• The HAFA releases sellers from any future financial liability on the first mortgage lien.
• Faster short sale approval process is implemented by HAFA thus making it a more streamlined and hassle-free process for short sale applications.
• Once short sale is approved, the following incentives are awarded to involved parties:

-          $2,000 for Investors

-          $1,500 for Servicers who facilitate and administer a short sale on behalf of sellers

-          $3,000 relocation assistance amount to be given to borrowers

The streamlined process implemented by the government and agreed upon by banking institutions has helped a lot of homeowners to sell their property without much difficulty. They are even offered the financial assistance that they need to start anew despite losing their homes. Contact us today to speak to a Maryland short sale Realtor to offer no cost expert short sale assistance.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you need to stop foreclosure on your Baltimore Maryland home, with the help of a short sale expert, then you are in the right place! Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Our services are 100% FREE to you!

Copyright First Coast Realty Associates 2012

Is the HAFA Short Sale Program Right for You?

The economic downturn that has affected the real estate market in the United States can no longer be described as gloomy. The word is not enough to describe the worst thing that has hit the housing industry in the country. Distressing can be the apt word for the long-running real estate economic meltdown that hit the states. In 2009 alone, a record high of 2.8 million homeowners had to face foreclosure. And in the following year, the statistics of an estimated 3.5 million homeowners facing foreclosure proved to be a tale-tale sign that the housing mess will remain for some time. Real estate experts even say that the downturn can last until 2012.

There are many options by which homeowners can avoid a foreclosure but one of the best options to choose now is the short sale. Traditional short sale transactions however, tend to be too slow for homeowners to avoid an impending foreclosure. And this is the reason why the Obama administration introduced the Home Affordable Foreclosure Alternatives. In the HAFA program, homeowners are supported to go with a short sale in order to avoid a foreclosure. If you are one of those homeowners who are near or facing foreclosure on your home, you should first ask if the HAFA short sale program is right for you. Here are the basics of the HAFA short sale program to help you discern if it can assist you in avoiding an impending foreclosure of your home.

What is the Goal of HAFA Short Sale Program
Since the real estate economic meltdown has struck the housing industry and is expected to be the prevailing atmosphere in the years to come, the HAFA short sale program is designed to help homeowners settle their mortgage debt and at the same time avoid foreclosure of their homes in the process. Nowadays, it is not a rare case for the amount of the mortgage debt to be greater than the value of your home. And in this instance, the HAFA short sale can be helpful of erasing your mortgage debt without going through the process of foreclosure. Applying to get included in the HAFA program is the best option if the homeowner is also not eligible for any other home loan assistance programs such as a loan modification.

Eligibility for HAFA Program
In order to earn eligibility to the HAFA short sale program, there are five criteria that homeowners who are facing an inevitable foreclosure must meet.
These are:
1. The house should be the principal personal residence of the homeowner. Exception to this rule is if the property has been vacant for a long time or has been rented out less than a year. The homeowner should also not have bought any property to be his principal residence during these times.
2. The mortgage loan amount should not exceed $729,750 if it is 1 unit. For more than 1 unit, here is the amount bracketing for the amount of mortgage loan covered by HAFA.
• $934,200 = 2 units
• $1,129,250 = 3 units
• $1,403,400 = 4 units
3. The homeowner should show proof of hardship like loss of job, loss or decrease of income stream, unexpected increase in expenses due to emergency medical allocation or the likes, or an increase in mortgage loan payment
4. The first mortgage should have originated before January 1, 2009
5. If the mortgage loan payment is more than 31% of the borrower’s monthly income
It must be noted by the homeowner applying for eligibility to the HAFA short sale program to pass all these criteria. A negative answer to any of these criteria can mean failure to qualify to the program.

Eligibility Issue
So what should the homeowner do when he does not pass the criteria set by HAFA. The best strategy in this case is to find and hire a Baltimore short sale Realtor. Actually, this option or strategy is what HAFA is recommending to all homeowners who failed to pass their screening process. Short sale agents are known to be an expert in terms of short selling a house. More than that, they know the intricacies of any US-government sponsored housing program that can best suit and meet the needs of homeowners.

What if you are Current with Your Mortgage Payments?
Another issue that can affect your eligibility for HAFA is if you are current with your mortgage payments. How can you be eligible for HAFA when there is basically no hardship situation showing on your loan payments history? This can be resolved by calling up your lender or insuring company. You will need their approval in order to short sale your house using the HAFA short sale program.

According to real estate experts, the housing economic meltdown will continue for some time. And during this prevailing housing mess, homeowners who are having a hard time paying their mortgage loan will face foreclosure with great possibility. The trend now is to find a leeway that can solve a foreclosure. Homeowners are likely to search and find ways to prevent this since a foreclosure of their homes besides the obvious result of losing a home can give their credit record a major blemish for at least the next ten years.

Homeowners who cannot avoid a foreclosure of their home should be wise to opt for a permanent solution to their mortgage loan problems. And one of the best solutions that they can avail is the short sale. The only thing they have to do now is to find out whether they can qualify for the government-sponsored housing program or seek qualified short sale agents that can help them face foreclosure. Contacting a short sale specialist Realtor about the HAFA Governement program may just be a jump start to rest of your life!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you are trying to stop foreclosure on your Baltimore MD home, then contact a Baltimore short sale Realtor! Our specialists provide FREE short sale expert services to Baltimore homeowners in hardship. Contact us right now and let’s get your short sale started! Need a Baltimore Distressed Property Expert in short sales to offer free broker short sale services? Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Bank of America Short Sales

One of the trickiest aspects of real estate short sales is that every lender has their own specific requirements for what they need to see in a short sale application. Each lender also has their own internal policies guiding their short sale approval process. These policies are not always transparent to the outside onlooker, and the only way to become familiar with them is through years of experience working with the lender. For this reason, it is highly advisable to have Short Sale Specialist working for you who is familiar with short sales and has worked with your lender many times in the past.

Bank of America Short Sale Timeline
Bank of America is one of the largest mortgage lenders in the country. From 2005-2009, Bank of America actually had a horrible reputation for processing short sales, with some agents actually refusing to list a short sale if the lender was Bank of America. There were horror stories of Bank of America losing important documents, dragging their feet when updates were requested, closing files for no apparent reason, and even refusals to respond to inquiries from agents. Fortunately in 2009, Bank of America turned over their short sale processing to Equator.com, and subsequently the short sale experience has been much smoother, with relatively fast short sale approval times of 1-2 months.

There are two streams through which you can complete a short sale through Bank of America – The traditional short sale stream, and a short sale through the U.S. Treasury Department’s Home Affordable Foreclosure Alternatives program (or HAFA for short). Both of these streams are fairly similar, but there are additional requirements that must be met in order to qualify for the HAFA stream. However, the HAFA stream also offers guaranteed deficiency waiver as well as a $3,000 cash incentive for completing the short sale.

Whether you’re looking to do a Bank of American Short Sale through the Home Affordable Foreclosure Alternatives program or a traditional short sale, you will need to contact an Baltimore Short Sale Specialist Realtor who is experienced in short sales. Ideally, you’ll want to choose a short sale Realtor who also has plenty of experience working with Bank of America short sales. This ensures that no matter what road-bumps come up during the short sale process, your Realtor will have the experience necessary to ensure a smooth transaction.

HAFA Short Sale Bank of America
Bank of America participates in the Home Affordable Foreclosure Alternatives program which is designed to help homeowners settle their mortgage debt while avoiding foreclosure. Homeowners performing their short sale through HAFA will receive a $3,000 cash back incentive for relocation costs as we well as an automatic deficiency waiver, meaning Bank of America will waive their right to pursue you for the outstanding balance of your debt. Below are the eligibility requirements for the Home Affordable Foreclosure Alternatives program:

• The property must be your current principal residence.
• If the property isn’t your current principal residence, it must have been rented out or vacant for less than twelve months. Additionally, you must not have purchased a principle residence during this period.
• The value of your property must be less than the outstanding value of your mortgage.
• Your mortgage amount (first mortgage only) must be equal to or less than $729,750.
• Your mortgage must have been undertaken prior to Jan 1, 2009
• You must have experienced a legitimate hardship that affected your ability to meet your current debt obligations

Traditional Bank Of America Short Sale Process
If you don’t qualify under the HAFA short sale program, you can still pursue a traditional short sale. Having an experienced short sale Realtor working for you is even more important if you’re pursuing a traditional short sale, as deficiency waiver is not guaranteed. An experienced short sale Realtor can arrange for deficiency forgiveness in many cases, though it may depend on your situation. To qualify for a short sale through Bank of America, you must meet the following requirements:

• You must have experienced a hardship that affected your ability to meet your debt obligation
• Your outstanding mortgage balance is larger than the value of your home
• You are unable to meet your monthly mortgage obligations
• You are not eligible for home loan modification

Bank Of America Forms & Bank of America Short Sale Package
The documentation required by Bank of America is fairly straight forward. The following documents are required from Bank of America in order to process your short sale. Your short sale Realtor should be able to assist you in completing the short sale package and answer any questions you might have.

• Bank of America short sale package
• Recent bank statements
• Tax returns
• Payroll stubs
• W-2s
• Letter of authorization
• Letter of hardship for short sale

Bank Of America Short Sale Process
With Bank of America’s new streamlined short sale system, the process is fairly straight forward, provided you are working with an experienced listing agent. Bank of America will collect all the information they need from your short sale Realtor. The Bank of America short sale process will proceed as follows:

• Bank of America will contact an agent and complete a broker price opinion (BPO) in order to assess the fair market value of your property
• Bank of America will review your short sale package and submitted documentation and notify you agent if anything is missing
• Bank of America will order internal payoff numbers
• Bank of America will issue a counter offer to your authorized agent
• Bank of America will submit your file to any 3rd parties that need to sign off on your short sale. This can include the mortgage insurance company or any 3rd party investors.
• Bank of America will notify your agent about the approval status of your short sale.

While the Bank of America short sale process is fairly straight forward, the key to a smooth transaction is to work with a Realtor with plenty of short sale experience as well as experience working with Bank of America in short sales. Contact an experienced short sale Realtor today to find out how you can proceed with your Bank of America short sale. Our Specialists are highly motivated individuals who main focus is successfully completing your short sale and getting you back on the road of life! Contact us now!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Searching for a  Baltimore MD short sale Realtor?  Our highly experienced Maryland foreclosure specialists provide FREE short sale expert services to Baltimore homeowners in hardship. Contact us to see if you qualify for a short sale! Need a Baltimore Distressed Property Expert in short sales to offer free broker short sale services? Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011