Tampa Bay Foreclosure & Short Sales » Loan Modification

Government Takes a Stronger Hold On HAMP

Dave — Thu, 01 Jul 2010 11:10:47 +0000

Since the Making Home Affordable plan has been implemented, about 300,000 homeowners have enjoyed an average reduction of $500 a month. Unfortunately, however, this has done very little to improve the housing market.

via Government Takes a Stronger Hold On HAMP.

Seven Year Penalty for Strategic Default

Dave — Thu, 01 Jul 2010 11:06:58 +0000

Strategic default is often defined as the conscious decision of a borrower to stop payments on an otherwise affordable mortgage because the property is worth less than the mortgage balance. The recent trend of strategic foreclosures has sparked concern and action on the part of Fannie Mae. In an effort to curb such default, Fannie Mae stated on Wednesday that it would lock out homeowners from receiving a new loan for a seven year period

via Seven Year Penalty for Strategic Default.

The Home Affordable Foreclosure Alternatives Program

Dave — Wed, 05 May 2010 11:32:28 +0000

Trying to reduce the rising number of foreclosures in the U.S., the Treasury Department introduced a new federal program that makes it easier to process a short sale for people unable to keep their homes.

Home Affordable Foreclosure Alternatives (HAFA) streamlines the process for doing a short sale or deed-in-lieu of foreclosure for distressed homeowners who do not qualify for a federal home loan modification through the Home Affordable Modification Program (HAMP) or have missed consecutive payments after a modification.

The HAFA program started April 5, 2010, and ends December 31, 2012. Federal rules require servicers participating in HAMP to implement HAFA. The new program also requires borrowers to be released fully from future liabilities related to their first mortgage, including cash contributions, promissory notes and deficiency judgments.

Participation in HAFA cannot save homeowners from losing their property, but it can eliminate the effects of a foreclosure on their credit. Financial incentives for program participation include a $1,000 servicing bonus for lenders and a $1,500 relocation bonus for displaced homeowners. Lenders of other subordinate liens (e.g., HELOCs) may be allowed to keep a limited portion of the proceeds (up to $3,000 each) of a short sale, with the first-lien lender’s approval.

HAFA is designed for homeowners who have applied to HAMP for assistance but have had no success with their loan modification program. To participate in HAFA, homeowners must still meet HAMP’s eligibility criteria: home is principal residence; first-lien mortgage is in delinquency or default is reasonably foreseeable; loan closed before January 1, 2009; unpaid balance is under $729,750; and the mortgage payment is over 31% of gross income.

For more information on HAFA, go to the following link:

https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html

The Impact of Foreclosure

Mary — Sun, 31 Jan 2010 22:25:57 +0000

Short sales and foreclosures have become the face of real estate. Property buyers are seeking deals and distressed homeowners are either walking away from their homes or trying to emerge from their situation as unscathed as possible.

The best way to avoid foreclosure is to pursue alternatives like a short sale or a loan modification. Don’t run from the obligation, but instead confront it head on with an experienced Realtor and your lender to determine the best approach.

Besides the obvious impact to the homeowner of losing the home itself, a post-foreclosure credit score will take a hit of at least 200 points and the homeowner’s credit history will reflect the foreclosure for seven years.

But the ripple effects continue. Both the neighborhood of the foreclosed home and the surrounding community are adversely impacted. Along with the equity, the value of those area homes declines and the likelihood of theft and vandalism increases.

Obviously there is lot at stake. A targeted approach with your lender, a licensed Realtor, and possibly a legal resource will potentially help your situation, maintain the integrity of your neighborhood, and eventually restore some balance to this market.

Good News about Short Sales

Dave — Fri, 22 Jan 2010 02:22:53 +0000

New rules from the U.S. Treasury could figure prominently in Central Florida’s housing market, where about one in every five existing-home purchases involves a short sale.
Key Points of the New Rules: Emerges between now and April; Only banks that owe the federal government TARP bailout funds must comply; New federal guidelines give lenders a 10-day limit in which to respond to sale offers; The Treasury rules, in addition to imposing a 10-day deadline for bank decisions, call for sellers to receive $1,500 moving allowances — and for the sellers to not have to repay any of the debt.

We are working closely with Bank of America in an effort to expedite any short sale they own or service.

Fannie Mae and Freddie Mac Loan Modification

Dave — Thu, 21 Jan 2010 16:05:18 +0000

I just explored this great opportunity if you are having a hardship and you live in your primary residence. If your 1st mortgage is backed by Fannie Mae or Freddi Mac, the FED has approved the HAMP program that will allow you to reduce your Principle & Interest to a more reasonable payment. In some cases it can reduce your payment $300-$350 in an average mortgage payment of $1500. This will allow you to save that money and pay down other bills that you may have so you can save your credit. A quick phone call and we can determine if you qualify for this type of option. Dave 727-488-9747