I have written about the pitfalls and drawbacks to the Home Affordable Foreclosure Assistance Plan (HAFA) before. Now the first online newspaper I have found has written about most of those same pitfalls and drawbacks.
HAFA was written by the banks. That says it all. But details still need to be written about. The linked article misses the most glaring drawback to HAFA. The distressed mortgage owner may not use an investor to negotiate their short sale. They are at the mercy of their lender to decide the outcome of their deficiency. That same distressed homeowner can count on a promissory note to account for the mortgage deficiency. The banks, with no discernible social conscience, are not going to turn loose of that mortgage deficiency on their own.
Depending of course on the individual hardship of the distressed mortgage owner, an adept investor can negotiate the dismissal of the entire deficiency. Because they have a cash offer for the distressed property, they have a vested interest in negotiating away that same mortgage deficiency. The bank simply wants all their money and none of the accountability for their part in the overall hardship on our economy.
The excitement and anticipation of HAFA quickly turned into disappointment as the effects of HAFA started to become clear. First of all, HAFA short sales require double the paperwork of other short sales. HAFA short sales typically take twice as long to complete, say realtors that are dealing with them. Before HAFA, the typical escrow period was 35 to 50 days. Now it’s taking 75 to 100 days in Arizona at least.
A typical short sale takes longer than regular home sales anyway because there are extra steps and more people involved.
Only about 10 percent to 20 percent of Phoenix-area short sellers actually qualify for the $3000 relocation money that comes with HAFA.
Over the past three months, HAFA short sales have developed a reputation for being more time-consuming, labor-intensive and unreliable than comparable short sales occurring outside the federal program. The HAFA applicant’s lender must send a letter of approval to the program’s administrators in Washington, who then must review the application themselves. Delays on the part of lenders and the government have dragged out the sale process.
An experienced investor is going to be more adept at efficiently gathering all of the required documentation for a short sale application.
Many realtors have watched the other aspects of the Home Affordable Mortgage Plan, or HAMP, fail. There’s not much hope here either.
Call an experienced investor like the ones I represent. We’ll get you done faster and with the smallest, if any, mortgage deficiency.
This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now Please ‘Like’ the video, will you? That makes it easier for others to find.
How may I help?
Powered by Fast Secure Contact Form
I read every comment. Please use the Comment box below and tell me what you think.
Read it here
tags:
short sale, do it yourself short sale, rest report, avoid foreclosure, stop foreclosure, prevent foreclosure, foreclosure alternatives, self negotiated short sale, negotiate mortgage deficiency, negotiate short sale, investor negotiated short sale, discharge mortgage deficiency, homeowner negotiated short sale, hafa, home affordable foreclosure assistance,
Originally posted 2010-07-15 08:35:22. Republished by Blog Post Promoter
{ 1 comment… read it below or add one }
Home Affordable Foreclosure Assistance going down a dead end street – http://www.mortgage-mod-monster.com/?p=574