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

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