HAFA? HAMP? HORA? !%##@

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HUH? If you’re confused you are not alone. Keeping up with the keep your home from foreclosure programs that keep coming out is a daily chore! Every time someone asks me,
“What do you know about this new program “they” are coming out with to help homeowners avoid foreclosure?” I have to ask, which one?

The new kids on the block would be from our favorite servicers’ Chase and Bank of America, with the Assist To List Program (Chase) and the High Performance Outreach Program or HPOP (Bank of America). After doing some research on the programs, both are their own spin offs from the HAFA program. Servicers’ were given 120 days from April to put the HAFA program into effect. Chase has begun a call center that is dedicated to help their borrowers who have listed their home for short sale and anyone else trying to start the short sale process. BofA has used their Equator system and once your short sale package is entered into the Equator system it is routed to your negotiator for a speedier process. BofA has also gathered a handful of borrowers that have fallen out of their loan mods or did not qualify for a loan mod and has contacted them directly to start their new HPOP program. BofA expects to tweek their program in the future.

The biggest differences from the past is that you no longer need a hardship letter, there is no deficiency judgement or threat of, the seller will receive $3,000 at closing for moving and we can expect (dare I expect?) a 7-10 day answer if it’s a Fannie Mae or Freddie Mac loan.

Be aware – this is not for every short sale – we are still in trial mode and most of these borrowers have been “hand-picked” for these programs! Maybe you had a FHA loan or maybe you fell out of your loan modification program. Do these qualifications not fit you? Stay tuned for the next

H _ _ _ program!

Until then, tell me what your program would be. I’d love to hear your suggestions!

Debbie Atwood Is Making A Splash In Snohomish County!

Related Articles

• Zenta Launches HAFA Compliant Loss Mitigation Program (eon.businesswire.com)
• Number of Failed & Permanent HAMP Mods Nearly Equal (hsh.com)
• Bank of America Continues to Lead in Completing Home Affordable Modifications; Proprietary Modification Count Approaches 100,000 in 2010 (eon.businesswire.com)
• Bank of America Permanent HAMP Modifications Increase 5.9% in July (housingwire.com)
• 75% of modified home loans will redefault (money.cnn.com)
• TARP And HAMP Are Not Working (realestateradiousa.com)
• BofA Leads in HAMP; Pace Slowing (wallstreetpit.com)
• HAFA: Is it really half the time? (agentgenius.com)

Real Estate in Snohomish County, WA

Northwest Multiple Listing Service 24 Hour Market Watch for Sunday 05/03/09

New Listings –  211

Back on Market – 27

Price Increases – 12

Price Reductions – 155

Contingent – 1

Pendings – 108

Solds – 42

Expireds – 67

Inactives -21

Breaking News —–

Bank of America Loosening Short Seller Policy

Bank of America (BOA) says it will relax its policy on payoffs connected with short sales.  Large banks have been demanding money for the home equity lines and second mortgages that would otherwise be worthless if the short sale property went to foreclosure. BOA ha been among the least cooperative of all banks in agreeing to short sale payoff terms, demanding 10 percent of what the homeowners owed on the equity line balance or second mortgage before signing off on the short sale, which is necessary for the deal to go through.  BOA spokesman Terry Francisco says the new policy is “less arbitrary, more rational.”

New Policy

BOA’s new policy is to ask for five percent of the sale proceeds on the short sale, net of realty commissions, closing, and other costs.  Some short sellers point to problems, though:  “The bank’s previous 10 percent policy meant they’d demand $20,000 on a $200,000 equity line balance, but under their new policy it will cost the short seller $15,000 if the net proceeds are $300,000” on a short sale, even though the economic value of their holding may in fact be zero.  Says the Realty Times:  “Bottom line for investors:  If there’s a Bank of America second mortgage or credit line on the house you’re after in a short sale, work the new numbers.  At least some of the time you might be surprised that the answer from the big bank is now “yes.”