Home Selling in 91344>Question Details

Jamonaso, Home Seller in 91344

I have two loans. 1st for $590K @5% fixed for 40yrs and a 2nd for $75K I/O. I have tried to modify both (principal reduction on the first and

Asked by Jamonaso, 91344 Thu Jun 10, 2010

interest reduction from 11% on the second without avail) Therefore we are considering a short sale at a comp price of $405K. I am expecting some money that might help me pay off the 2nd thus leaving me only with the first @590K for 40 yrs and . Given prices, economy turnaround and the consequences of a short sale (2 years w/o buying a home) Shoudl i consider paying off the second or just give it up? thanks

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Dear Jamonaso,
You have few options, if you want to keep your property do not give up, work something with the second lien holder they are open for negotiaton. The only thing is if you would like to reduce the principal you need to be on time on your payments for the last 12 months if not the only modification will be the interest reduction.
Right now is a lot of help for home owners that want to keep the properties, you can also call the HUD and they will help you at no charge. If after looking all the options you do not get the help you need please call me and we can meet and go over your case.
Thanks and have a nice day
Best Regards
1 vote Thank Flag Link Wed Jun 23, 2010
Thank you all, I got my Realtor on the loop. Thankfully both 1st and 2nd participate
0 votes Thank Flag Link Thu Jun 10, 2010
No you do not need to reapply for HAMP. You can go direct to HAFA. For a HAFA short sale it is mandatory that you get a real estate agent for listing the property. HAFA procedures have to be followed carefully and the faster you get an agent the better since both you and the agent have to sign the Short Sale Agreement (SSA) which goes to the lender. Make sure the agent you get has done HAFA transactions or understands HAFA.

You also need to check that your lender has signed on to the HAFA program. There are approximately 108 lenders who have done so. Incidentally Fannie Mae and Freddie Mac have not signed onto HAFA, however, I understand, they have said that they would follow it.
0 votes Thank Flag Link Thu Jun 10, 2010
NO, they never advice me that, instead they only send me a letter to reapply when my situation changes.
I know is been over 30 days since that letter, do i need to reapply for Hamp and go to the process again? (getting an answer from the bank took 2 months)
0 votes Thank Flag Link Thu Jun 10, 2010
If you were denied a mod under HAMP you can still be eligible for HAFA as long as your mortgage payments exceed 31% of your gross income. Lenders who have subscribed to HAFA must automatically consider you for HAFA after you are denied a mod under HAMP. Did that happen?

0 votes Thank Flag Link Thu Jun 10, 2010
Thanks. I did applied to HAMP on the first and was denied due to income (over the guidelines)., the second wont budge either due to income as well.
0 votes Thank Flag Link Thu Jun 10, 2010
Hi Jamonaso:

If your loan was taken out prior to January 1, 2009, in all likelihood, you may qualify for a short sale under the Home Affordability Foreclosure Alternative (HAFA) program. In this case both loans would come under the program. Not only is the process under HAFA dictated by a time-line, unlike how short sales were taking place earlier, you may also be able to do the short sale without any hit on your credit score, provided you are current on your mortgage payments. Finally, under HAFA you are entitled to a borrower’s relocation assistance amount of $3,000.

If you need details of the HAFA program, let me know.

Bob Khalsa
United America Realty
0 votes Thank Flag Link Thu Jun 10, 2010
That's a tough question because you are asking for advice, rather than a "how to" question. You seem to know your options, but I don't think you should get your financial advice from agents. A financial advisor may have better insight.
0 votes Thank Flag Link Thu Jun 10, 2010
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