Foreclosure in 97007>Question Details

Seven, Home Seller in 97007

is there a new law going into effect april 5th, that allows a person to short sell their home without 1st or 2nd mortgage holders being able to sue.?

Asked by Seven, 97007 Thu Mar 11, 2010

i understand the government will also pay the person $1,500.00 for relocating.

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Hello,

There is a lot of good information to answer your question. If you would like to read the complete HAFA announcement, use this link. https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf

I'm not sure who your servicing lender is and it will be important to know if they are the tru servicing lender or have servicing rights but really are servicing for another investor. B of A has a bad reputation for short sales yet Thursday 4/8/10 I attended their seminar which is claiming to want to overcome this label.

Click here and it will take you the blog which details their steps in complying with HAFA and what the process to expect will be with them. http://www.trulia.com/blog/crystal_beard/2010/04/b_of_a_anno…

Crystal Beard - Lending throughout the State of Oregon
crystal@ambientlending.com
0 votes Thank Flag Link Mon Apr 12, 2010
James White gave the most complete answer. Bottom line this is not a law, it is a program that are looking for participants to work within the programs structure. The program has a start date of 4/5/10, but by the banks own admission, they will not be ready until june or july. In addition, the likely hood of all second mortgages agreeing to only $3000 no matter what you have borrowed is very unlikely.

In my opinion, this program, is kind of like the HAMP program, that had a lot of guidelines and has had little effect. The modification that have become perminate is under 16% of all applications. Both programs have been laid out the same way with a lot of documentation and little clout to enforce!



Keith Manson

First Weber Group

Certified Distressed Property Expert

Metro Milwaukee


http://www.milwaukeebailout.com
0 votes Thank Flag Link Thu Mar 11, 2010
What is going into efferct is the "Home Affordable Foreclosure Alternatives Program" (HAFA).

Here are the details: If you want the full report send me an e-mail and I'll send it to you!

HAFA, which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP), provides incentives in connection with short sales and deeds-in-lieu of foreclosure.
The program: 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 under HAMP.
Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%).
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).
Uses a standard process, uniform documents, and timeframes/deadlines.
Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to a $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.
Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.
Does not take effect until April 5, 2010, but servicers may implement it before then
0 votes Thank Flag Link Thu Mar 11, 2010
The link below is an artical about the new ideas you are hearing about.

Satisfied customers are the core of my business...
The Finest Compliment I could receive is a referral from you!

Farah de Verteuil
Principal Broker
John L Scott Market Center
Office: (503) 336-5403
Cell: (503) 758-6281
Fax: (503) 844-9802
Email: FarahV@JohnLScott.com
Click on the link below for an INSTANT Market Snapshot
http://www.homeinsight.com/Widget/default.asp?BL334S041T6O
0 votes Thank Flag Link Thu Mar 11, 2010
To say "not able to sue" isn't quite correct. But new rules on short sales will soon go into effect. It's a deed-in-lieu type program, where if the defaulting borrower deeds his home to the foreclosing lender, he may receive $1500 in moving expenses. But it all has to be part of a larger agreement with both first and second lenders, who may waive suits. Also, it's not a "law," it's just a program for loans insured by Fannie Mae and Freddie Mac.

Trulia doesn't like agents to advertise, but if you go to my profile, you'll find a link to a website I maintain for mortgage rescue and foreclosure avoidance. It's not a sales pitch and it has a lot of information.

SInce you're in Washington County, an organization called Open Door has HUD-trained counselors who help people in your situation for free. They do an outstanding job. I think it's opendoorcc.org.
0 votes Thank Flag Link Thu Mar 11, 2010
Here is the law that took effect March 3rd.
Click the link attached below . You have many options available for short sale. Approval of two lenders can be tricky. The second can decide to give way for the first lein holder. Be sure to view the link below it is directly from the Oregon Realtor Association.

I will post another that will show what the April "idea" is all about.

Satisfied customers are the core of my business...
The Finest Compliment I could receive is a referral from you!

Farah de Verteuil
Principal Broker
John L Scott Market Center
Office: (503) 336-5403
Cell: (503) 758-6281
Fax: (503) 844-9802
Email: FarahV@JohnLScott.com
Click on the link below for an INSTANT Market Snapshot
http://www.homeinsight.com/Widget/default.asp?BL334S041T6O
0 votes Thank Flag Link Thu Mar 11, 2010
On April 5th, 2010, a program will take effect ( HAFA), which will help homeowners who are unable to retain their homes under the prior program (HAMP), provides incentives in connection with short sales and deeds-in-lieu of foreclosure. It also offers a recourse if they were unable to qualify for the prior program. I suggest searching for the details of the program at "Home Affordable Foreclosure Alternatives.", for details. It is my opinon that the answer to your question is no. A homeowner may through the proper process obtain all leinholders permission to proceed with a short sale, but a lot of procedures must be followed to the letter. And, if they do complete the short sale properly, the homeowner can be granted freedom from repayment obligations, but not without the possibility of tax ramifications. Consult an attorney. The relocation expenses are real and are part of the HUD-1 settlement obtained at closing.
0 votes Thank Flag Link Thu Mar 11, 2010
As of now that is only an Obama idea.
0 votes Thank Flag Link Thu Mar 11, 2010
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