The Making Homes Affordable program recently introduced HAFA which helps streamline the short sale process. We are equiped to process and facilitate these requests immediately, providing documents etc as needed.
HAFA is part of HAMP and provides financial incentives to servicers and borrowers who utilize a short sale to avoid a foreclosure on an eligible loan under HAMP. Both of these foreclosure alternatives reduce the need for potentially lengthy and expensive foreclosure proceedings. The options help preserve the condition and value of the property by minimizing the time a property is vacant and subject to vandalism and deterioration. In addition, these options generally provide a substantially better outcome than a foreclosure sale for borrowers, investors and communities
In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the mortgage. The short sale must be an arm’s length transaction with the net sale proceeds (after deductions for reasonable and customary selling costs) being applied to a discounted (“short”) mortgage payoff acceptable to the servicer. The servicer accepts the short payoff in full
satisfaction of the total amount due on the first mortgage.
Short sales and DILs are complex transactions involving coordination and cooperation among a number of parties including, but not limited to, servicers, appraisers, borrowers (sellers), buyers, real estate brokers and agents, title agencies, and often mortgage insurance companies and subordinate and other lien holders. The HAFA program simplifies and streamlines the use of short sales and DIL options by incorporating the following unique features:
Complements HAMP by providing viable alternatives for borrowers who are HAMP eligible.
Utilizes borrower financial and hardship information collected in conjunction with
HAMP, eliminating the need for additional eligibility analysis.
Allows the borrower to receive pre-approved short sale terms prior to the property listing.
Prohibits the servicer from requiring, as a condition of approving the short sale, a
reduction in the real estate commission agreed upon in the listing agreement.
Requires that borrowers be fully released from future liability for the debt.
Uses standard processes, documents and timeframes.
Provides financial incentives to borrowers, servicers and investors.
Servicers must evaluate a borrower for a HAMP modification prior to any consideration being given to HAFA options in accordance with the provisions of Supplemental Directive 09-01 and any supplemental HAMP guidance. Borrowers that meet the eligibility criteria for HAMP but who are not offered a Trial Period Plan, do not successfully complete a Trial Period Plan, or default on a HAMP modification should first be considered for other loan modification or retention programs offered by the servicer prior to being evaluated for HAFA.
A loan meets the basic eligibility criteria if all of the following conditions are met:
The property is the borrower’s principal residence;
The mortgage loan is a first lien mortgage originated on or before January 1, 2009;
The mortgage is delinquent or default is reasonably foreseeable;
The current unpaid principal balance is equal to or less than $729,7501; and
The borrower’s total monthly mortgage payment (as defined in Supplemental Directive
09-01) exceeds 31 percent of the borrower’s gross income.
Every potentially eligible borrower must be considered for HAFA before the borrower’s loan is referred to foreclosure or the servicer allows a pending foreclosure sale to be conducted. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days of the date the borrower:
Does not qualify for a Trial Period Plan;
Does not successfully complete a Trial Period Plan;
Is delinquent on a HAMP modification by missing at least two consecutive payments; or
Requests a short sale
Conventional Short Sale
With the time it takes to process a short sale packet and handle the case with the lender, a real estate agent typically falls short of being successful. Many Real Estate professionals have turned to a third party short sale processing and negotiation service.
Short Sales involve juggling between client paperwork, lenders, constant follow ups, faxes and numerous phone calls. We are familiar with lender guidelines and processes, forms and procedures. Not only is negotiating a short sale important but how the offer is presented is crucial. We are meticulous with our short sale packets. Quality Assurance is #1 to our success. We offer short sale processing as an individual service or combined with our negotiation service.
Processing a short sale offer may consist of:
* consulting with clients on the short sale process and procedures and what to expect
* submitting the short sale packet to the client and following up with them to ensure
receipt of all the required documentation.
* creating market analysis' reports
* finalizing financial paperwork and hardship documents
* corresponding with title and escrow
* finalizing the short sale packet
We will......
* handle each client professionally
* provide professional, complete and timely short sale packets
* maintain virtual notes and status' reports for your review
* work closely with our clients to collect and prepare all necessary hardship documentation
* manage the short sale case through to closing
FOR HAFA REQUESTS OR CONVENTIONAL SHORT SALES
PROCESSING FEES
The processing fee is billed upon completion of the packet and an offer has been executed by the homeowner. Processing and facilitation fees vary from $250.00 and $750.00
Processing includes the following
Compile, prepare and manage short sale package :
- Follow ups to the homeowner to gather all required hardship documentation
- BPO preparation and comprehensive market analysis'
- Preparation of formal short sale packet including hardship documentation
- Transactional research and data compilation as needed.
Our clients are always kept informed of status via our Web Office
Get started by submitting your contact information below. We cannot accommodate investor requests at this time.