Now that the administration has determined that the Home Affordability Mortgage Program is not working, we are on to the next program - Home Affordability Foreclosure Avoidance (HAFA). After months of lost paperwork, more paperwork, phone calls, more phone calls, more waiting on hold, the time has come to sell the home.The HAFA plan sounds good for those who have exhausted all means of saving the home because it does short sale the home with a "paid as agreed" on their credit. That is an enormous incentive for those who have always paid their bills on time and value their good credit. It also provides relocation costs. The homeowner can save his credit, move on, and buy another home later at a more affordable price.It's also good for buyers. These short sales are approved BEFORE they are listed! Buyers will return to the short sale market knowing they won't have to wait months to get an approval letter from the lender. Look for HAFA on April 5, 2010.Now, let's look back to Loan Modifications. They haven't been replaced, we are just going to approach them differently. Beginning June 2010, the administration would like the lenders to get "upfront documentation" before proceeding with a loan modification. No more 3 month trial period, then going through the process of making sure you are qualified for a permanent loan modification. Just tell the homeowners upfront if they qualify or not. Makes sense, right?Let's hope we get it right and get the market back to where it should be. Maybe 2010 can be the turning point for homeowners, buyers, sellers, and the entire real estate industry.
Comments