The process for short sale will duplicate the loan modification process.
The US Treasury Department recently released guidelines and forms for its new Home Affordable Foreclosure Alternatives (HAFA) program. Article posts by various mortgage entities are receiving more and more attention as the guidelines increase in visibility.
When I started researching mortgage modification and short sale programs last March, I was convinced that most homeowners would prefer to keep their home if given a choice. I focused on facilitating efficient and ethical mortgage modifications. It has since developed that the iron-clad assurance of avoiding mortgage servicer treachery is the REST Report. This blog has emphasized that method.
I knew that not every distressed mortgage could be modified, and that there were instances where it was more beneficial for the distressed homeowner to pursue a short sale. The most efficient and ethical short sale is accomplished by a company that has experience in beneficial short sales AND the capital to close the minute a short sale is negotiated with the lender.
(Deed-in-Lieu is much less preferable than a short sale, and there is no excuse for settling for that option. The REST Report assures at least a short sale.)
Since it’s adoption, the HAFA, or Home Affordable Foreclosure Assistance has been a miserable failure. HAMP suffers from lack of enforcement on the part of the feds. HAFA was written by the banks. It benfits only the banks, and I can’t find one Reator that has had a positive experience.
The short story here is the the forms and process for a beneficial short sale will duplicate the mortgage modification program. If a beneficial mortgage modification proves unattainable, pursuing a short sale will be a smooth transition.
Salient features of HAFA are:
• Complements the HAMP program by providing an alternative for borrowers – the current homeowners – who might be HAMP-eligible but are unable to keep their homes.
• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
• Allows borrowers to receive preapproved short-sale terms before listing the property, including the minimum acceptable net proceeds.
• Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement – up to 6 percent.
• Requires borrowers to be released from future liability for the first mortgage debt – no cash contribution, promissory note or deficiency judgment is allowed.
• Uses standard processes, documents and time frames/deadlines.
• Provides financial incentives: $1,500 for borrower relocation assistance
Now that HAFA has been around for awhile, it is evident that the banks wrote the law. Who would you think it benefits? Not the homeowner, I assure you. I have not found a single realtor that has anything good to say about it.
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The internet being what it is, certain search terms need to be empahasized so that you can find the best information. Obviously this page concerns short sale, short sale rules, and foreclosure alternatives. But other concerns such as try title, quiet title, and clear title may apply. The REST Report is best classified as loan modification software or do it yourself loan modification. But if your reduced income is too low, short sale versus foreclosure is the goal. The REST Report claim to fame is that you use it to
calculate Net Present Value exactly the way the banks do, using their software. It is the answer for a real estate title search to decide if your mortgage servicer has the right to foreclose on you at all. This blog is dedicated to independant mortgage advice. If you have assignment of title issues or need to calculate net present value, you may have a cloud on your title which can block the short sale rules. This blog is a resource to evaluate short sale vs. foreclosure. There is no excuse for foreclosure other than the treachery of your mortgage servicer.
This YouTube video explains the Broken Chain of Title, short sale, cloud on title situation
Read it here
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Originally posted 2009-12-10 22:31:16. Republished by Blog Post Promoter
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