by Tammy Murphy | Mar 19, 2012 | Current Events, Facing Foreclosure, Short Sale
Short Sales Get Shorter: New Deadlines to go into Effect
As part of a settlement with state attorneys general, the five largest mortgage servicers are adopting new requirements for short sales, which is expected to speed-up what has been known as a lengthy process.
Here are some of the new requirements for servicers under the settlement:
- Servicers must provide borrowers with a decision within 30 days after receiving a short sale package request.
- Servicers will be required to notify a borrower, also within 30 days, if any necessary documents are missing to process the short sale request.
- Servicers must notify a borrower immediately if a deficiency payment is needed to approve the short sale. They also must provide an estimated amount for the deficiency payment needed for the short sale.
- Servicers are also required to form an internal group to review all short sale requests.
- Banks will be considered in violation of the settlement requirements if they take longer than 30 days on more than 10 percent of the short sale requests.
Violations can carry fines of up to $1 million and $5 million for repeat offenses.
Source: “AG Settlement Starts the Clock on Short Sales,” HousingWire (March 14, 2012)
by Tammy Murphy | Nov 26, 2011 | Current Events, Real Homes to Love, Short Sale
This ad is for the Chevy Cruze ECO, but it makes a very “valid” point…
Watch You Tube video: Chevy Cruze ECO ad
Many times, it is the “first” house you saw…the one you thought had something you didn’t like – that you end up going right back and fall in love with. This video (although for the car itself) is actually a great ad for Real Estate! When you make the list of all the Wants / Needs / and Like To Haves, make sure you allow a little room for your own personal touches to turn the house into your “home!.” I am glad to help assist you in your search 🙂
by Tammy Murphy | Nov 24, 2011 | Current Events, Facing Foreclosure, Short Sale
If you are in need of additional information regarding owing more on your mortgage than what the tax value is / short sales / foreclosures, please feel free to contact Tammy…
Home Affordable Foreclosure Alternatives Program (HAFA)
In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010 and sunsets on December 31, 2012.
HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA.
HAFA Provisions
- Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
- Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
- Allows borrowers to 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 (no cash contribution, promissory note, or deficiency judgment is allowed).
- Uses standard processes, documents, and timeframes/deadlines.
- Provides the following financial incentives:
- $3,000 for borrower relocation assistance;
- $1,500 for servicers to cover administrative and processing costs;
- Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
Information provided in NAR update report / newsletter November 23, 2011.
