Archive for HAFA/HAMP
HAMP July Scorecard…Are Loan Modifications Really Working?
Posted by: | CommentsIf you are a Las Vegas Homeowner facing a foreclosure or in danger of defaulting on your home loan(s), it is critical to understand all of your options to avoid foreclosure.
Take advantage of our FREE REPORT: “10 Alternatives to Foreclosure – Know Your Options” and download it today. Just complete the form in the sidebar and you will receive the report via email.
One of those 10 Alternatives to Foreclosure is a Loan Modification. Contacting your lender is the first step. Many lenders (loan servicers) are participating in HAMP (Home Affordable Modification Program) or have their own loan modification guidelines and procedures.
If you are a Las Vegas homeowner who is currently attempting a loan modification or have been denied a permanent modification or are unable to continue making the trial payments, you still have options to avoid a foreclosure. One of those options to consider is a Las Vegas short sale. The good news?….. you have already gathered and submitted the required documentation to the lender that they also require to approve a Las Vegas short sale.
Contact us today for a free Las Vegas Short Sale Consultation to discover if a short sale is the best course of action for you.
The Making Home Affordable Program is the government’s initiative to reach out and help homeowners facing foreclosure. The program has met with much criticism in the press, the real estate industry and from frustrated homeowners alike. Let’s take a look at the real numbers for HAMP loan mods through July 2010. Download the full report: July-2010-HAMP-Report
- Eligible borrowers identified for the program = 1,456,363
- Trial Plans have been extended to 1,553,925 borrowers. Of that total, 1,307,489 borrowers started loan modification trials.
- Of those who started the trial loan modifications, 616,839 could not complete the three-month trial period and will likely lose their homes.
- Borrowers who are still in trial loan mods = 255,934. This is down from 364,077 last month. There is still a large number of borrowers in limbo since only 165 thousand trials were started over the last 5 months.
- There have been 421,804 permanent modifications to this point. These are people who otherwise would have lost their homes.
- If you are a Las Vegas, Henderson or North Las Vegas homeowner with a distressed property and want to try and remain in your home, then attempting a loan modification is a definite first step…. Contact your lender. Statistically speaking and based on the results to date, roughly 32% of the trial loan modifications have been permanently modified.
- If you fall into one of these categories… You may want to consider a streamlined short sale… Contact Us for a Foreclosure Alternatives Consultation.
- you are currently in a trial loan modification and having difficulties making your modified payment
- you have been disapproved for a permanent loan modification
- you don’t qualify for a loan modification at this time
- you don’t want loan modification and want to sell the property
Kathryn Bovard is experienced with the often lengthy and stressful Las Vegas short sale process. If you are contemplating a Las Vegas short sale , she can assist and navigate you through the entire process. Call Kathryn direct at 702-348-7191 to schedule a short sale consultation today.
Are Your Considering a Short Sale with Bank of America?
Posted by: | CommentsBank of America services approximately one-third of Nevada mortgage loans.
- Are you a Las Vegas Homeowner with a Bank of America loan struggling to make
your payments or facing a possible foreclosure? - Have you considered all of your options to foreclosure – to include a Las Vegas short sale?
- Have you tried a loan modification and experienced frustration with the process?
- Do you qualify for a HAFA short sale with BofA?
- Are you familiar with the eligibility requirements and the HAFA short sale process?
Here are some options and recommendations to ensure you get the answers to these and other important questions:
1. Start your personal research and gather information.
- Visit BofA’s Home Affordable Foreclosure Alternatives web page for more info, FAQs, and the process
- DSNEWS.com reported on June 2, 2010: BofA Opens Homeowner Outreach Center in Nevada – here is an excerpt:
Bank of America has opened the first of three outreach centers to serve Nevada mortgage customers who are seeking loan modifications or other foreclosure prevention assistance.
With the acquisition of Countrywide in 2008, Bank of America services about one in three mortgage loans in Nevada. The lender says its home retention efforts have resulted in completed mortgage modifications for more than 15,000 Nevada homeowners since January 2008, with another 7,500 currently in active trial modifications as part of the federal government’s Home Affordable Modification Program (HAMP).
2. Contact us today for a free consultation to discuss your options to foreclosure.
The Serra Group is qualified and experienced with the often lengthy and stressful Las Vegas short sale process. We will be happy to guide you to other professionals to discuss both the legal and tax ramifications when considering a short sale or any other option to include a foreclosure. Should a Las Vegas short sale be the best option for you, we are prepared to assist and navigate you through the entire process.
Kathryn Bovard 702-348-7191
Las Vegas Short Sales Now Possible for Fannie Mae & Freddie Mac Mortgages
Posted by: | CommentsHAFA is the Home Affordable Foreclosure Alternatives program from the U.S. Treasury that became effective on April 5, 2010 designed to streamline and standardize the short sale process for qualified homeowners. Read our 5 part series to learn more about the HAFA program.
HAFA excluded all Fannie Mae and Freddie Mac loans with the understanding that these GSEs (Government Sponsored Enterprises) would publish their own guidelines at a later date. Well that date has arrived… on June 1, 2010 both GSEs announced their guidelines for HAFA short sales. These programs will allow homeowners with GSE loans to pursue a short sale or deed-in-lieu of foreclosure if they are unable to secure a modification under the government’s foreclosure prevention program.
Do you have a Fannie or Freddie mortgage? Find out by looking your loan up at this site: Fannie or Freddie Loan Lookup
Both programs are almost identical to the Treasury’s HAFA program for non-GSE mortgages. The borrower must first be evaluated and denied for a Making Home Affordable Program (HAMP) workout plan. The GSE HAFA programs take effect Aug. 1, 2010, but servicers are allowed to use HAFA immediately.
Here are some minor differences from the Treasury HAFA program:
- Servicers are eligible for a $2,200 cash incentive for each completed short sale (it is $1,500 for non-GSE HAFA) and $1,500 for each completed deed-in-lieu.
- Freddie Mac Eligibility: 60 days late and have cash reserves less or $5,000 or 3 times their monthly mortgage. Borrowers may be in foreclosure, in pending litigation involving the mortgage, or in active bankruptcy.
- In addition, Freddie said it does not require or accept cash contributions or promissory notes from the borrower.
All the details of the programs can be found at the respective websites:
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a Las Vegas short sale?
The Serra Group is here for your confidential, no obligation consultation regarding your options – there are solutions and we are here to help you navigate the distressed property process.
Call Kathryn at 702-348-7191.
HAFA Series Part 5 – Can I Request a HAFA Short Sale without doing a HAMP modification?
Posted by: | CommentsThis is part 5 in a 5 part series on HAFA. HAFA is the Home Affordable Foreclosure Alternatives program from the U.S. Treasury effective April 5, 2010. HAFA is designed to complement the HAMP program and is expected to streamline and standardize the short sale process for qualified homeowners.
The previous posts covered the eligibility, participating servicers/lenders, and the procedures and time-frames for HAFA for a borrower who has already started the HAMP process.
This post will answer the question Can I Request a HAFA Short Sale without first applying for HAMP (the loan modification program)?
The short Answer – Maybe Yes… with the Alternative Request for Approval of Short Sale (Alternative RASS)
Here is the scenario:
You are a homeowner who did not know about the HAMP program or possibly can not or do not want to pursue a loan modification. The property is your primary residence and you have a hardship that can be documented and are considering a short sale as an option. To qualify for HAFA, you will have to meet all the basic eligibility requirements outlined in this previous post.
Your next step is to contact a licensed real estate agent (we can help!) and review all of your options including the Alternative Request for Short Sale Approval through the HAFA program. If your decision is to do the short sale, we list the property and help you negotiate an offer to purchase from a qualified borrower.
Here are the highlights of the Alternative RASS directly from the Supplemental Directive:
If the borrower has an executed sales contract and requests the servicer to approve a short sale under HAFA before an Short Sale Agreement (SSA) has been executed, then the borrower must submit the request to the servicer in the form of the Alternative Request for Approval of Short Sale (Alternative RASS), Exhibit B. To download and review an example of the documents got to the HAMP Admin site and scroll down to Borrower Documents.
Upon receipt of the Alternative RASS, the servicer must determine the basic eligibility of the borrower as described in the HAFA Consideration section of the Supplemental Directive…..HAFAsd0909r_Mar26_2010.
If the borrower appears to be eligible and was not previously considered for a Trial Period Plan, the servicer must notify the borrower verbally or in writing of the availability of a HAMP modification and allow the borrower 14 calendar days from the date of the notification to contact the servicer by verbal or written communication and request consideration for a HAMP modification.
In addition, the servicer must verify the borrower’s financial information through documentation and obtain a signed Hardship Affidavit from the borrower prior to approving the short sale.
If the borrower does not wish to be considered for a modification, the servicer may consider the Alternative RASS in accordance with this Supplemental Directive without first having to enter into an SSA with the borrower. If the servicer approves the short sale, then the loan will qualify for the HAFA program.
A borrower may not participate in a HAMP Trial Period Plan and agree to a HAFA SSA simultaneously.
Read the rest of the series on HAFA:
- HAFA Series Part 1 – What is the Home Affordable Foreclosure Alternatives Program?
- HAFA Series Part 2…Who is eligible for HAFA?
- HAFA Series Part 3 – Which loan servicers are participating and review of the timeframes
- HAFA Series Part 4 – What else should I know about Home Affordable Foreclosure Alternatives?
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale? Contact us today to discuss your options and/or to see if you qualify for HAFA.
Call Kathryn at 702-348-7191 or Stephanie 497-7705.
This is part 4 in a 5 part series on HAFA. HAFA is the Home Affordable Foreclosure Alternatives program from the U.S. Treasury effective April 5, 2010. HAFA is designed to complement the HAMP program and is expected to streamline and standardize the short sale process for qualified homeowners.
Here are some other HAFA program guidelines to understand:
- The deal must be “arms length.” Borrowers can’t list the property or sell it to a relative or anyone else with whom they have a close personal or business relationship.
- The amount of debt forgiven might be treated as income for tax purposes. Under a law expiring at the end of 2012, however, the tax may not apply. Forgiven debt will not be taxed if the amount of forgiven debt does not exceed the debt that was used to acquire, construct, or rehabilitate a principal residence. Check with a tax advisor.
- The servicer will report to the credit reporting agencies that the mortgage was settled for less than full payment. There will be a negative effect on credit scores.
- 90 day “No-Flipping” term: Buyers may not sell and transfer title of the property within 90 days after closing.
The U.S. Treasury announced new enhancements to the HAMP and HAFA program on March 26, 2010:
Enhancements to the Incentives portion of HAFA:
- Increases incentives to provide more homeowners with foreclosure alternatives
- Doubles the relocation assistance payment for borrowers successfully completing a foreclosure alternative (HAFA short sale) to $3,000 from $1,500.
- Increases servicer incentive payments from $1,000 to $1,500 to increase use of foreclosure alternatives and encourage additional outreach to homeowners unable to complete a modification.
- Increases payoffs to subordinate lien holders who agree to release borrowers from debt. The new payoff schedule allows servicers to increase the maximum payoff to subordinate lien holders to 6 percent (it was 3%) of the outstanding loan balance and doubles from $1,000 to $2,000 the incentive reimbursement that is available to investors for subordinate lien payoffs, subject to an overall cap of $6,000.
Read the rest of the series on HAFA:
- HAFA Series Part 1 – What is the Home Affordable Foreclosure Alternatives Program?
- HAFA Series Part 2…Who is eligible for HAFA?
- HAFA Series Part 3 – Which loan servicers are participating and review of the timeframes
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale? Contact us today to discuss your options and/or to see if you qualify for HAFA.
Call Kathryn at 702-348-7191 or Stephanie 497-7705.
HAFA Series Part 3 – Which loan servicers are participating and review of the timeframes
Posted by: | CommentsThis is part 3 in a 5 part series on HAFA.
HAFA is the Home Affordable Foreclosure Alternatives program from the U.S. Treasury effective April 5, 2010. HAFA is designed to complement the HAMP program and is expected to streamline and standardize the short sale process for qualified homeowners.
What Loan Services (Banks) are participating?
According to HUD, over 100 loan servicers have signed up for the Making Home Affordable program covering more than 89% of mortgage debt. To see if your lender is on the list, go to http://www.makinghomeaffordable.gov/contact_servicer.html and click on “show all servicers.”
What is the Timeline of the HAFA short sale process?
14 Days- The lender must notify the borrower of their options in writing and give the borrower 14 days to respond. If the borrower does not respond that ends the lenders duty to give a HAFA offer.
30 Days- Servicers must consider borrowers for the HAFA plan within 30 days of one of the following:
- If the borrower does not qualify for a HAMP trial period,
- or does not successfully complete a HAMP trial period plan,
- or is delinquent on a HAMP modification,
- or requests a short sale
14 Days- The loan servicer will prepare and send a Short Sale Agreement to the borrower/seller. The Seller has 14 days to return a fully executed Short Sale Agreement to the lender. The short sale agreement will contain a variety of terms including:
- Acceptable list price and/or net proceeds from the sale
- 120 Days-The lender must give the Seller 120 days to sell the short sale the house (extensions up to 12 months possible).
- Requirement that the property be listed with a licensed real estate professional who is regularly doing business in the community
- Amount of closing costs or other expenses servicer will permit
3 Days-Within 3 days of receiving an offer, Seller (via the real estate agent) must submit a completed Request for Approval of Short Sale (RASS) to the lender along with the complete purchase agreement and additional information per the short sale agreement.
45 Days-The lender may not ask the Seller (borrower) to close before 45 days unless Seller/Buyer agrees.
10 Days-Lender must release the first mortgage lien from receipt of short sale proceeds.
HAFA Series Part 1 – What is the Home Affordable Foreclosure Alternatives Program?
HAFA Series Part 2…Who is eligible for HAFA?
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale? Contact us today to discuss your options and/or to see if you qualify for HAFA.
Call Kathryn at 702-348-7191 or Stephanie 497-7705.
HAFA Series Part 2…Who is eligible for HAFA?
Posted by: | CommentsThis is part 2 in a 5 part series on HAFA.
HAFA is the Home Affordable Foreclosure Alternatives program from the U.S. Treasury effective April 5, 2010. HAFA is designed to complement the HAMP program and is expected to streamline and standardize the short sale process for qualified homeowners.
The borrower (homeowner) must meet the basic eligibility criteria for HAMP in order to be considered for HAFA:
- Must be the owner-occupant and be your principal residence.
- First lien (mortgage) originated before January 1, 2009.
- Mortgage delinquent or default is reasonably foreseeable.
- Unpaid principal balance no more than $729,750 (higher limits for 2 to 4 unit dwellings).
- Have a mortgage payment that is not affordable due to a financial hardship that can be documented.
- Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income
HAFA alternatives are available to all HAMP-eligible borrowers who:
1) do not qualify for a Trial Period Plan;
2) do not successfully complete a Trial Period Plan;
3) miss at least two consecutive payment during a HAMP modification; or,
4) request a short sale or deed-in-lieu.
HAFA Series Part 1 – What is the Home Affordable Foreclosure Alternatives Program?
HAFA Series Part 3 – Which loan servicers are participating and review of the timeframes
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale? Contact us today to discuss your options and/or to see if you qualify for HAFA.
Call Kathryn at 702-348-7191 or Stephanie 497-7705.
HAFA Series Part 1 – What is the Home Affordable Foreclosure Alternatives Program?
Posted by: | CommentsThe Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid foreclosure and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid a foreclosure.
In a short sale, the loan servicer allows the borrower to list and sell the mortgaged property with a licensed real estate agent with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. In other words, a homeowner’s lender allows the property to be sold at a loss where the lender initially takes all or part of the loss. Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer – provided title is free and clear of mortgages, liens and encumbrances.
Under normal circumstances a short sale can take several months and ongoing work to complete. HAFA is designed to simplify and streamline the short sale process by providing a standard process flow, minimum performance timeframes for lenders, sellers and agents and standard documentation.
If the program works as proposed, here are some highlights and benefits of HAFA for the qualified homeowner:
- Complements HAMP (Home Affordable Modification Program – www.makinghomeaffordable.com) by providing a viable alternative for borrowers (the current homeowners) who are eligible for a potential home loan modification through HAMP but nevertheless unable to keep their home.
- Uses borrower financial and hardship information already collected in connection with consideration of a loan modification under HAMP.
- Allows borrowers to potentially receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
- Requires borrowers to be fully released from future liability for the first mortgage debt and if the subordinate lien holder receives an incentive under HAFA, that debt as well (no cash contribution, promissory note, or deficiency judgment is allowed).
- Provide financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 match for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis; up to 3% of the unpaid principal balance of each subordinate loan).
HAFA Series Part 2…Who is eligible for HAFA?
HAFA Series Part 3 – Which loan servicers are participating and review of the timeframes
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale?
The Serra Group is here for your confidential, no obligation consultation
regarding your options – there are solutions! Call Kathryn at 702-348-7191.
