Fannie Mae, Freddie Mac on track to buy delinquent mortgages, analysts say
By Bloomberg News
Tuesday, December 29, 2009
The U.S. government's expanded capital backstops and portfolio limits for Fannie Mae and Freddie Mac increase "the prospect of large-scale" purchases by the companies of delinquent mortgages out of the securities they guarantee, according to Credit Suisse Group analysts.
The Treasury Department announced Thursday that the two mortgage-finance companies, which were seized by the United States almost 16 months ago, could tap an unlimited amount of capital for three years, up from as much as $200 billion each. It reworked caps on Fannie Mae and Freddie Mac's mortgage-asset portfolios to require the holdings to fall to $810 billion each by Dec. 31, 2010, rather than about $690 billion.
Fed proposes term deposits to drain reserves
By Associated Press
Tuesday, December 29, 2009
The Federal Reserve on Monday proposed allowing banks to set up the equivalent of certificates of deposit at the central bank, a move that would help the Fed mop up money pumped into the economy and prevent inflation from taking off later.
Under the proposal, the Fed would offer "term deposits" that would pay interest. Doing so would provide banks with another incentive to park their money at the Fed, rather than having it flow back into the economy.
Tuesday, December 29, 2009
Short Sale Tips for Buyers and Sellers
Author: Roby Pagong
A short sale takes place when the value of the property declines to be lesser than the remaining value of the mortgage. The homeowner decides to sell his property because he can no longer keep up with the monthly payments. In this case, the approval of the lender has to be approved. This is necessary because he has to agree to receive a discounted payment of the mortgage loan. This makes it difficult because the lender often rejects the proposal of the seller.
This is why you have to know how to present a good short sale package. It should convince the lender to approve the proposal. First, you have to understand that the lender wants to minimize the loss, so make sure that you have a decent offer for the property. Make sure you have all the requirements as well.
How to qualify
There are various requirements needed to qualify for a short sale. First, there should be a decline in the property value. This can happen if there is decline in property prices in your area. This may also occur if you neglect your property. Aside from the price, the lender will also check your mortgage. It should be near default or in default. This can be a result of a hard time that you or your family is facing.
Another important requirement is the hardship letter. This should explain the hard time you are experiencing which caused you to miss your payments. Not all hardships are acceptable for the lender. You cannot qualify for a short sale if you are unhappy with the current home you are in or that you want to relocate. Some of the acceptable incidences are unemployment, death in the family, divorce and health expenses.
The lender will also require your financial statement. The lender will check if you have other assets. They do this because as much as possible, they want to avoid the short sale. They do not want to resort to this because of the significant loss they will be incurring. Additionally, there are sellers who are doing this to avoid their responsibilities. Some just want to get an approval so that they can move to a more beautiful home.
If you want to apply for a short sale, remember to be patient as this can take longer. You might even need to reapply for it.
For the buyers
If you are a buyer, purchasing a short sale is a good deal. It is not only cheap but it also shows a lot of promise. However, you need to conduct a research before you make a purchase. It is also essential that you know how much the remaining balance of the mortgage is. This will give you an idea of how much to offer the seller. Finally, if you are going to hire an agent, see to it that he is experienced with short sales to be able to represent you properly.
A short sale property is a good investment. However, you have to be careful when making the purchase. If the lender rejects the first proposal, you need to be ready to increase your offer.
Article Source: ArticlesBase.com - >Short Sale Tips for Buyers and Sellers
For more information about Short Sale view our FORECLOSURE RESCUE page.
Monday, December 28, 2009
Top Updates: Week of December 28th, 2009
Tweaking a successful financial formula
By Michelle Singletary
Sunday, December 27, 2009
Despite a still funky economy, many people are doing well.
Yes, the unemployment rate is too high. People continue to lose their homes. And credit card debt is smothering many consumers. But as the year comes to a close, I wanted to address questions from readers who are fine financially yet need some tweaks to the way they handle their money.
Weak economy motivates Americans to save more
By V. Dion Haynes
Washington Post Staff Writer
Sunday, December 27, 2009
As crazy as it sounds, losing a $70,000-a-year job has been good for Marty Morua's finances. The former Wall Street stockbroker says the setback forced him to scrutinize his family budget and snip away at expenses. And soon, even with less income, their savings grew.
Senate banking committee leaders close to a deal on financial regulatory reform
By Binyamin Appelbaum
Washington Post Staff Writer
Friday, December 25, 2009
The chances that the Senate would produce bipartisan financial reform legislation seemed to grow longer with each passing minute at the mid-November hearing at which Sen. Richard C. Shelby (R-Ala.) read 2,600 words of scornful disapproval for the draft bill circulated by Sen. Christopher J. Dodd (D-Conn.).
U.S. promises unlimited financial assistance to Fannie Mae, Freddie Mac
By Zachary A. Goldfarb
Washington Post Staff Writer
Friday, December 25, 2009
The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress.
By Michelle Singletary
Sunday, December 27, 2009
Despite a still funky economy, many people are doing well.
Yes, the unemployment rate is too high. People continue to lose their homes. And credit card debt is smothering many consumers. But as the year comes to a close, I wanted to address questions from readers who are fine financially yet need some tweaks to the way they handle their money.
Weak economy motivates Americans to save more
By V. Dion Haynes
Washington Post Staff Writer
Sunday, December 27, 2009
As crazy as it sounds, losing a $70,000-a-year job has been good for Marty Morua's finances. The former Wall Street stockbroker says the setback forced him to scrutinize his family budget and snip away at expenses. And soon, even with less income, their savings grew.
Senate banking committee leaders close to a deal on financial regulatory reform
By Binyamin Appelbaum
Washington Post Staff Writer
Friday, December 25, 2009
The chances that the Senate would produce bipartisan financial reform legislation seemed to grow longer with each passing minute at the mid-November hearing at which Sen. Richard C. Shelby (R-Ala.) read 2,600 words of scornful disapproval for the draft bill circulated by Sen. Christopher J. Dodd (D-Conn.).
U.S. promises unlimited financial assistance to Fannie Mae, Freddie Mac
By Zachary A. Goldfarb
Washington Post Staff Writer
Friday, December 25, 2009
The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress.
Monday, December 21, 2009
Top Updates: Week of December 21st, 2009
Anatomy of a Crisis. How did we get here?
The Washington Post's Frank Ahrens looks back and breaks down the forces that led to the financial market meltdown.
Fed's approach to regulation left banks exposed to crisis
By Binyamin Appelbaum and David Cho
Washington Post Staff Writer
Monday, December 21, 2009
Foreclosures already pocked Chicago's poorer neighborhoods but the downtown still was booming as the Federal Reserve Bank of Chicago convened its annual conference in May 2007.
The keynote speaker, Federal Reserve Chairman Ben S. Bernanke, assured the bankers and businessmen gathered at the Westin Hotel on Michigan Avenue that their prosperity was not threatened by the plight of borrowers struggling to repay high-cost subprime loans.
Friday, December 18, 2009
How to make a home look like Christmas
By Jura Koncius
Washington Post Staff Writer
Thursday, December 17, 2009
In early December, the shingle-style Gibson Island home of Erin and Gregory Pitts gets dressed for the holidays in the natural colors of this small island in the Chesapeake Bay.
"The colors of my home are a reflection of my surroundings," says Erin Paige Pitts, an interior designer with three small children. "Blues from the sky and water, the grays and silver of driftwood, and the natural cream of sand and shells." For Christmas, her house is filled with armloads of fragrant greens and branches she cuts nearby, mixed with shells and blue and silver balls. "Everything in the stores is red and green, but personally, I feel more comfortable with neutrals and blues," she says.
Washington Post Staff Writer
Thursday, December 17, 2009
In early December, the shingle-style Gibson Island home of Erin and Gregory Pitts gets dressed for the holidays in the natural colors of this small island in the Chesapeake Bay.
"The colors of my home are a reflection of my surroundings," says Erin Paige Pitts, an interior designer with three small children. "Blues from the sky and water, the grays and silver of driftwood, and the natural cream of sand and shells." For Christmas, her house is filled with armloads of fragrant greens and branches she cuts nearby, mixed with shells and blue and silver balls. "Everything in the stores is red and green, but personally, I feel more comfortable with neutrals and blues," she says.
Wednesday, December 16, 2009
Top Updates: Week of December 14th, 2009
Citigroup, Wells Fargo to repay bailouts
NINE BIG BANKS NOW HAVE DEALS
Both sides eager to wind down TARP
By David Cho and Binyamin Appelbaum Washington Post Staff Writer
Tuesday, December 15, 2009
The federal government continued to wind down its bailout of the nation's biggest banks on Monday, reaching an agreement to eliminate its stakes in Citigroup and Wells Fargo.The willingness of banking regulators to strike a deal with the two firms -- both of which continue to face serious problems -- underscored the eagerness of both sides to end an extraordinary period of federal support for the financial industry. Banks have chafed at some of the conditions placed on the federal rescue money, such as limits on executive pay, while the administration has been criticized for using taxpayer funds to bail out Wall Street.
House Democrats discard larger debt limit
By Paul Kane, Washington Post Staff Writer
Tuesday, December 15, 2009
House Democratic leaders, bowing to their party's deficit hawks, will move the year's final must-pass piece of legislation without a long-term increase to the national debt and without a large boost in infrastructure funding that was aimed at creating jobs.
Obama calls on banks to ramp up lending
Executives brought to White House as loans dry up in recession
By Binyamin Appelbaum and Michael A. Fletcher
Washington Post Staff Writer Tuesday
December 15, 2009
President Obama exhorted the nation's biggest banks on Monday to make "extraordinary" efforts to increase lending, even as some of those firms are racing to distance themselves from government control.
Ending the Housing Crisis One Short Sale at a Time – How One Company Provides Security to the Process
By Paige Tepping, RISMEDIA
December 14, 2009
Short sales and home warranties seem to go hand in hand, especially considering the realities of today’s real estate market. “Short sales have a hundred moving parts; a hundred problems that all need to be solved at the same time,” says Bonnie Overbeck of Three Blondes and a Short Sale. “While you are dealing with a stressed seller, a buyer who doesn’t entirely trust the situation and money problems everywhere, the home warranties we provide through HSA Home Warranty act as an extra layer of security.”
Obama presses bank chiefs to lend more
White House to push for greater regulation, curbs on executive pay
By Binyamin Appelbaum
Washington Post Staff Writer
Monday, December 14, 2009
President Obama, who lashed out Sunday at "fat cat bankers" who "still don't get it," plans to gather the heads of major banks at the White House on Monday to urge them to make more loans and to accept the necessity of greater regulation...
Turnaround seen for area retailers
STUDY POINTS TO NEW D.C. JOBS.
Dismal sales in 2009 mirrored rest of U.S.
By V. Dion Haynes
Washington Post Staff Writer
Monday, December 14, 2009
While steady expansion of the federal government has shielded metropolitan Washington from the soaring unemployment rates seen elsewhere, troubles among the region's retailers are mirroring national losses in that sector with steep job cuts and a sales decline projected to reach 7 percent this year, a new study says.
Home buyers can afford to wait awhile
By Steven Goldberg
Sunday, December 13, 2009
Mortgage interest rates are at a 50-year low. Congress has extended a tax credit for home buyers through April. The economy is beginning to crawl out of what by some measures is the deepest recession since the 1930s. One survey already shows housing prices beginning to rise.
So isn't it time to buy a house? If I were in the market for a new home, I would wait. Housing prices typically don't rebound quickly after a bust; instead, they level out and stay near that low base line for years.
NINE BIG BANKS NOW HAVE DEALSBoth sides eager to wind down TARP
By David Cho and Binyamin Appelbaum Washington Post Staff Writer
Tuesday, December 15, 2009
The federal government continued to wind down its bailout of the nation's biggest banks on Monday, reaching an agreement to eliminate its stakes in Citigroup and Wells Fargo.The willingness of banking regulators to strike a deal with the two firms -- both of which continue to face serious problems -- underscored the eagerness of both sides to end an extraordinary period of federal support for the financial industry. Banks have chafed at some of the conditions placed on the federal rescue money, such as limits on executive pay, while the administration has been criticized for using taxpayer funds to bail out Wall Street.
House Democrats discard larger debt limit
By Paul Kane, Washington Post Staff WriterTuesday, December 15, 2009
House Democratic leaders, bowing to their party's deficit hawks, will move the year's final must-pass piece of legislation without a long-term increase to the national debt and without a large boost in infrastructure funding that was aimed at creating jobs.
Obama calls on banks to ramp up lending
Executives brought to White House as loans dry up in recession
By Binyamin Appelbaum and Michael A. Fletcher
Washington Post Staff Writer Tuesday
December 15, 2009
President Obama exhorted the nation's biggest banks on Monday to make "extraordinary" efforts to increase lending, even as some of those firms are racing to distance themselves from government control.
Ending the Housing Crisis One Short Sale at a Time – How One Company Provides Security to the Process
By Paige Tepping, RISMEDIA
December 14, 2009
Short sales and home warranties seem to go hand in hand, especially considering the realities of today’s real estate market. “Short sales have a hundred moving parts; a hundred problems that all need to be solved at the same time,” says Bonnie Overbeck of Three Blondes and a Short Sale. “While you are dealing with a stressed seller, a buyer who doesn’t entirely trust the situation and money problems everywhere, the home warranties we provide through HSA Home Warranty act as an extra layer of security.”
Obama presses bank chiefs to lend more
White House to push for greater regulation, curbs on executive pay
By Binyamin Appelbaum
Washington Post Staff Writer
Monday, December 14, 2009
President Obama, who lashed out Sunday at "fat cat bankers" who "still don't get it," plans to gather the heads of major banks at the White House on Monday to urge them to make more loans and to accept the necessity of greater regulation...
Turnaround seen for area retailers
STUDY POINTS TO NEW D.C. JOBS.
Dismal sales in 2009 mirrored rest of U.S.
By V. Dion Haynes
Washington Post Staff Writer
Monday, December 14, 2009
While steady expansion of the federal government has shielded metropolitan Washington from the soaring unemployment rates seen elsewhere, troubles among the region's retailers are mirroring national losses in that sector with steep job cuts and a sales decline projected to reach 7 percent this year, a new study says.
Home buyers can afford to wait awhile
By Steven Goldberg
Sunday, December 13, 2009
Mortgage interest rates are at a 50-year low. Congress has extended a tax credit for home buyers through April. The economy is beginning to crawl out of what by some measures is the deepest recession since the 1930s. One survey already shows housing prices beginning to rise.
So isn't it time to buy a house? If I were in the market for a new home, I would wait. Housing prices typically don't rebound quickly after a bust; instead, they level out and stay near that low base line for years.
Monday, December 14, 2009
Friday, December 11, 2009
Top News, Week of Dec 7th, 2009
The Nation's Housing. In trouble and thinking about a short sale? Help is on the way.
By Kenneth R. Harney
Saturday, December 12, 2009
If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's new standardized short-sale plan that's scheduled to roll out during the next several months. The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has traditionally been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, timelines and financial incentives...
Short sale plan should standardize, quicken the process
By Kenneth R. Harney, Special to the Times
In Print: Saturday, December 12, 2009
Short sale plan should help standardize, quicken process. WASHINGTON — If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's standardized short sale plan that's scheduled to roll out during the coming months. The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, time lines and financial incentives.
Standardized short-sale plan may relieve big headache
By Kenneth R. Harney Syndicated columnist, The Seattle Times
WASHINGTON — If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's new standardized short-sale plan scheduled to roll out during the coming months. The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, timelines and financial incentives.
Ginnie Mae enables the firms to issue more taxpayer-backed loans
By Brian Grow and Zachary A. Goldfarb Washington Post Staff Writer
Thursday, December 10, 2009
The trouble signs surrounding Lend America had been building for years. A top executive was convicted of mortgage fraud but still helped run the company. Home loans made by its headquarters were defaulting at an extremely high rate. Federal prosecutors alleged in a civil suit that the company falsified loan documents and committed fraud.
JUST 4 PERCENT IN FINAL STAGE
Thousands now risk losing mortgage help
By Renae Merle
Washington Post Staff Writer
Friday, December 11, 2009
The government's foreclosure relief program is sputtering, according to government data released Thursday showing that the pace of help being offered to struggling homeowners slowed last month and many borrowers are at risk of losing the aid they have already received.
Lawmakers growing frustrated with mortgage-relief failures
By Renae Merle
Washington Post Staff Writer
Wednesday, December 9, 2009 Most of the struggling homeowners who have enrolled in the Obama administration's marquee mortgage-relief program still haven't proved they qualify for help, illustrating lingering weakness in the effort to aid distressed borrowers. About 70 percent of the borrowers who have signed up for the program, called Making Home Affordable, have yet to provide adequate documentation, and many homeowners continue to struggle even after their mortgage payments are lowered, industry and government officials told the House Financial Services Committee on Tuesday.
By Kenneth R. Harney
Saturday, December 12, 2009
If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's new standardized short-sale plan that's scheduled to roll out during the next several months. The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has traditionally been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, timelines and financial incentives...
Short sale plan should standardize, quicken the process
By Kenneth R. Harney, Special to the Times
In Print: Saturday, December 12, 2009
Short sale plan should help standardize, quicken process. WASHINGTON — If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's standardized short sale plan that's scheduled to roll out during the coming months. The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, time lines and financial incentives.
Standardized short-sale plan may relieve big headache
By Kenneth R. Harney Syndicated columnist, The Seattle Times
WASHINGTON — If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's new standardized short-sale plan scheduled to roll out during the coming months. The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, timelines and financial incentives.
Ginnie Mae enables the firms to issue more taxpayer-backed loans
By Brian Grow and Zachary A. Goldfarb Washington Post Staff Writer
Thursday, December 10, 2009
The trouble signs surrounding Lend America had been building for years. A top executive was convicted of mortgage fraud but still helped run the company. Home loans made by its headquarters were defaulting at an extremely high rate. Federal prosecutors alleged in a civil suit that the company falsified loan documents and committed fraud.
JUST 4 PERCENT IN FINAL STAGE
Thousands now risk losing mortgage help
By Renae Merle
Washington Post Staff Writer
Friday, December 11, 2009
The government's foreclosure relief program is sputtering, according to government data released Thursday showing that the pace of help being offered to struggling homeowners slowed last month and many borrowers are at risk of losing the aid they have already received.
Lawmakers growing frustrated with mortgage-relief failures
By Renae Merle
Washington Post Staff Writer
Wednesday, December 9, 2009 Most of the struggling homeowners who have enrolled in the Obama administration's marquee mortgage-relief program still haven't proved they qualify for help, illustrating lingering weakness in the effort to aid distressed borrowers. About 70 percent of the borrowers who have signed up for the program, called Making Home Affordable, have yet to provide adequate documentation, and many homeowners continue to struggle even after their mortgage payments are lowered, industry and government officials told the House Financial Services Committee on Tuesday.
Monday, December 7, 2009
Top Updates: Week of Dec 30th, 2009
An attempt to open banks' doors to all
By Michelle Singletary
Sunday, December 6, 2009
Millions of Americans -- 60 million, in fact -- conduct their day-to-day financial business outside the banking system, leaving many to be preyed upon by payday-loan companies, rent-to-own establishments and other non-bank institutions.
Quarter of borrowers in anti-foreclosure plan are behind
Delinquencies worry some; other experts say it's too early to judge
By Renae Merle
Washington Post Staff Writer
Saturday, December 5, 2009
About 25 percent of borrowers helped under the administration's massive foreclosure prevention plan have already fallen behind on their new mortgage payments, according to government data that raise new questions about the program's effectiveness.
ECONOMICS AND MORTGAGE MARKET ANALYSIS
By Fannie Mae
Housing Forecast: November 2009
By Michelle Singletary
Sunday, December 6, 2009
Millions of Americans -- 60 million, in fact -- conduct their day-to-day financial business outside the banking system, leaving many to be preyed upon by payday-loan companies, rent-to-own establishments and other non-bank institutions.
Quarter of borrowers in anti-foreclosure plan are behind
Delinquencies worry some; other experts say it's too early to judge
By Renae Merle
Washington Post Staff Writer
Saturday, December 5, 2009
About 25 percent of borrowers helped under the administration's massive foreclosure prevention plan have already fallen behind on their new mortgage payments, according to government data that raise new questions about the program's effectiveness.
ECONOMICS AND MORTGAGE MARKET ANALYSIS
By Fannie Mae
Housing Forecast: November 2009
Home Affordable Foreclosure Alternatives Program (HAFA)
The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly. To qualify under these new guidelines:
* The property must be the home owner’s principal residence.
* The home owner must be delinquent on the mortgage or close to defaulting.
* The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
* The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.
Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale.
Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens.
Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments. Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.
Short Sale Reforms Receive Mixed Reviews
By: Brittany Dunn, DSNEWS.com
As DSNews.com reported earlier this week, the U.S. Treasury Department announced new guidelines to the short sale process on Monday in hopes of speeding up the recovery of the housing market. Occurring when a lender accepts the sale of a home at a price below the actual amount owed, short sales have become a growing part of the real estate business as troubled homeowners seek out alternatives to foreclosure.
Government unveils new short-sale rules
By J.W. Elphinstone
THE ASSOCIATED PRESS
Tucson, Arizona Published: 12.03.2009
The Treasury Department unveiled sweeping rules this week to help financially troubled homeowners who need to sell but can't get a price high enough to pay off their mortgages. Homeowners will even get $1,500 to help cover their moving costs.
The plan is designed to help homeowners who don't have the income or debt levels to qualify for a loan modification under the Obama administration's $75 billion Making Home Affordable program. The plan establishes timelines, a standard process and documents, and cash incentives for participation.
Press Releases from MakingHomeAffordable.gov
Read New Articlies here
Servicer Performance Report through October 2009
Government Will Provide Financial Incentives To Encourage Short Sales
Wednesday, December 02, 2009
Written by: Jon Prior , HousingWire.com
The US Treasury Department has announced plans to launch a foreclosure program aimed at encouraging borrowers, servicers and investors, to pursue short sales. Scheduled to launch in April 2010, the Home Affordable Foreclosure Alternatives Program (HAFA) will offer up to $3,500 in incentive payments to qualified borrowers, servicers and investors who complete short sale transactions for properties with loans on the verge of foreclosure.
Weekly Updates from Making Home Affordable
This site provides mortgage servicers with the information and tools needed to participate in the Obama Administration's Home Affordable Modification Program (HAMP) and other program updates related to the Making Home Affordable (MHA) Program.
December 2, 2009
HAMP Update - Q4 2009 Base NPV Model Documentation Supplement Now Available
Short Sale Incentives Coming in 2010, Treasury Says
By JON PRIOR
December 1, 2009 10:38 AM CST
As HousingWire first reported, the US Treasury Department will launch the Home Affordable Foreclosure Alternatives Program (HAFA) in 2010.
Guidelines Aim to Ease Short Sales
By RUTH SIMON , Wall Street Journal
December 1, 2009
The Obama administration laid out final guidelines on Monday that should make it easier for some financially troubled borrowers to sell their homes.
The guidelines are designed to encourage the use of short sales, transactions in which the borrower with lender approval sells the home for less than what is owed on the loan. The program also makes it easier for borrowers to voluntarily transfer ownership of properties through a "deed in lieu of foreclosure."
On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA).
by Realtor.org
HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.
HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. HAFA:
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 in connection with consideration of a loan modification.
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 percent).
Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
Uses standard processes, 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 $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).
The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on December 31, 2012.
Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure
Making Home Affordable
November 30, 2009
Help for America's Home Owners
Supplemental Directive 09-09
HAMP Update – New Program Offers Borrowers Foreclosure Alternatives
Making Home Affordable
November 30, 2009
Help for America's Homeowners
Supplemental Directive 09-09: Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure was published
* The property must be the home owner’s principal residence.
* The home owner must be delinquent on the mortgage or close to defaulting.
* The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
* The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.
Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale.
Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens.
Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments. Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.
Short Sale Reforms Receive Mixed Reviews
By: Brittany Dunn, DSNEWS.com
As DSNews.com reported earlier this week, the U.S. Treasury Department announced new guidelines to the short sale process on Monday in hopes of speeding up the recovery of the housing market. Occurring when a lender accepts the sale of a home at a price below the actual amount owed, short sales have become a growing part of the real estate business as troubled homeowners seek out alternatives to foreclosure.
Government unveils new short-sale rules
By J.W. Elphinstone
THE ASSOCIATED PRESS
Tucson, Arizona Published: 12.03.2009
The Treasury Department unveiled sweeping rules this week to help financially troubled homeowners who need to sell but can't get a price high enough to pay off their mortgages. Homeowners will even get $1,500 to help cover their moving costs.
The plan is designed to help homeowners who don't have the income or debt levels to qualify for a loan modification under the Obama administration's $75 billion Making Home Affordable program. The plan establishes timelines, a standard process and documents, and cash incentives for participation.
Press Releases from MakingHomeAffordable.gov
Read New Articlies here
Servicer Performance Report through October 2009
Government Will Provide Financial Incentives To Encourage Short Sales
Wednesday, December 02, 2009
Written by: Jon Prior , HousingWire.com
The US Treasury Department has announced plans to launch a foreclosure program aimed at encouraging borrowers, servicers and investors, to pursue short sales. Scheduled to launch in April 2010, the Home Affordable Foreclosure Alternatives Program (HAFA) will offer up to $3,500 in incentive payments to qualified borrowers, servicers and investors who complete short sale transactions for properties with loans on the verge of foreclosure.
Weekly Updates from Making Home Affordable
This site provides mortgage servicers with the information and tools needed to participate in the Obama Administration's Home Affordable Modification Program (HAMP) and other program updates related to the Making Home Affordable (MHA) Program.
December 2, 2009
HAMP Update - Q4 2009 Base NPV Model Documentation Supplement Now Available
Short Sale Incentives Coming in 2010, Treasury Says
By JON PRIOR
December 1, 2009 10:38 AM CST
As HousingWire first reported, the US Treasury Department will launch the Home Affordable Foreclosure Alternatives Program (HAFA) in 2010.
Guidelines Aim to Ease Short Sales
By RUTH SIMON , Wall Street Journal
December 1, 2009
The Obama administration laid out final guidelines on Monday that should make it easier for some financially troubled borrowers to sell their homes.
The guidelines are designed to encourage the use of short sales, transactions in which the borrower with lender approval sells the home for less than what is owed on the loan. The program also makes it easier for borrowers to voluntarily transfer ownership of properties through a "deed in lieu of foreclosure."
On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA).
by Realtor.org
HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.
HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. HAFA:
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 in connection with consideration of a loan modification.
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 percent).
Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
Uses standard processes, 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 $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).
The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on December 31, 2012.
Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure
Making Home Affordable
November 30, 2009
Help for America's Home Owners
Supplemental Directive 09-09
HAMP Update – New Program Offers Borrowers Foreclosure Alternatives
Making Home Affordable
November 30, 2009
Help for America's Homeowners
Supplemental Directive 09-09: Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure was published
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