This call will also target owners and renters that are occupying homes at risk of foreclosure. More important, it cost almost nothing to educate hundreds if not thousands of people at on time.   Our first call was a success and we are looking to partner with agents around the country to do more. Please listen to the audio of the first call, in which 50 people attended.  This is better than any workshop I've held or seen when it comes to foreclosure.  May 25th, 2011 Audio

"The only way to bring about stabilization to our neighborhoods is to get valuable information out to the people that need it most. Workshops are not working." said Broker and CEO, Jonathan G Burgess. Burgess has overseen the sale of over four hundred foreclosed homes and short-sales over the last 3 years throughout the company’s California offices. Neighborhood property values, cities, counties and utility providers suffer the most when the wrong decisions are made by the occupants of these homes. Code 3 Realty & Mortgage Inc. has made equipping individuals with the necessary information to make the right decision concerning their situations a top priority.

Many real estate companies are hosting workshops for distressed homeowners to get much-needed foreclosure prevention information, however attendance to those events is usually low. “I’m not surprised attendance is low because this is a sensitive topic and can be embarrassing for many” said Burgess. "The majority of home owners struggling to keep their homes would rather not attend an open forum to discuss foreclosure. Telephone conferences are a discrete alternative."

Owners and renters can get valuable, free information about programs and options to assist them by joining these conference calls. This information must get out if we are going to bring about stability to our economy and restore property values in neighborhoods.

The first conference will begin on Wednesday, May 25th, 2011 at 7:00pm -7:30 pm.

Join our Group ON REO PRO Today!!

Today I got a call from the listing agent on a Sunnyvale Short Sale where my buyer is waiting patiently. The agent said that the file went into HAFA limbo. A new wrinkle in short sale submission is HAFA elegibility testing.  When a short sale is submitted many banks are automatically sending the file for HAFA review, to see if the owner qualifies. the problem is that too often either the buyer does not qualify and you have lost 6-8 weeks waiting for a reply.  In this case the file just got lost in the HAFA department but the point here is that the banks are doing this automatically. The seller has to specifically ask to be taken out of the program when you submit the short sale package or it will go into auto review.  Since up to this point less than 10,000 HAFA short sales have been approved nation wide it is a real long shot. Since not only does the seller have to qualify, but the investors on the loan and all mortgage insurance holders have to approve the pay off.  It may be that the revamped HAFA program may have better success, but until I see those numbers I will not believe it.  My short sale sellers have opted not to roll the dice, but instead try to move on with their lives sooner rather than later.  So now I have another question to ask the lisiting agent before submitting a short sale offer, "Is the Seller applying for HAFA?"  If so, it is a good bet that there will be an extra 2 months added on to the short sale unless they get approved for the buyer, the price, and the investor's ok ahead of time. If not I will remind the listing agent to opt out.

If you have any questions about short sales please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

D.R.E  01191194

650-619-9285

Federal Government Disclaimer (MARS):
1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Here are the points covered by BofA Representatiives during the July 28th, 2010 Webinar::

• For the most part HAFA Short Sales require same type of documentation: Hardship Letter, Financials, Last 2 Years of Tax Returns, Last 2 Months Bank Statements, Last 2 Check Stubs etc.
• 2nd & 3rd lien pay-offs are limited to $6,000 or 6% of unpaid balance.
• Under the HAFA program, homeowners receive $3,000 for relocation expenses at close of escrow. Each servicer receives $1,500 as an additional incentive.
• HAFA is designed for homewoners who did not qualify under the HAMP (Loan Modification) Program.
• Short Sales under HAFA eliminate the possibility of Deficiency Judgments (amount "forgiven" or not paid to lenders).
• Home must be owner-occupied. BofA does offer other Short Sale programs for investors.
• While a Standard Short Sale in progress can be converted to a HAFA Short Sale, when possible it is recommended that the HAFA Short Sale be approved in advance by the bank.
• The homewoner will select the Short Sale Broker/Agent, not the bank.
• BofA HAFA Short Sales are now being initiated/tracked in the Equator website. This change has significantly improved agent/negotiator communication & has made process faster & more transparent.
• Under HAFA, the initial listing period will be 120 days. If the home does not sell, an extension could be granted or a Deed in Lieu would be considered by the lender.
• Under the HAFA guiduelines, after a Short Sale Offer is received by the bank, the goal is to provide an answer in 10 days or less.

For more information on the HAFA program, visit http://makinghomeaffordable.gov/hafa.html

You can also e-mail me your questions @ reoprorealty@gmail.com

Re-blogged by 1 agent

• I posted this blog on some public websites and ws surprised at how many people were unaware of this option for distressed homeowners that is quick, clean, and relatively hassle free.

An Interesting Alternative to Foreclosure: A Deed in Lieu of Foreclosure (edit/delete)

I think this is a good option for banks and homeowners. Wouldn't you enjoy not having to kick someone out of their home?

As a realtor, I reviewed my first HAFA request with a client whom thought the letter receivd by overnight delivery was the same old thing just another letter informing her that she did not qualify for HAMP. There was exactly 14 days to respond and after a telephone call and four different departments and four different representatives we landed in the HAMP center which was outsourced to yet another company. Once we got to the right person and department promises were made verbally to my client and a series of letters are expected next. Looking forward to working in the HAFA program and hope this process is painless.

Special prices applicable till April 30, 2010. CAR members please use promotion code “APCAR005” and non-CAR members please use “APUSA005” on the order form.

Training and Certification Content (2-3 hours)

• 
  
• Section I – Foreclosure Alternatives Market Background
• Section II – HAFA Overview
• Section III – Implications of HAFA
• Section IV – HAFA Roles and Responsibilities
• Section V – HAFA Process and Documents
• Section VI – HAFA Opportunities and Challenges

HAFA Certification Quiz

Each of the above modules ends with a short multiple choice test. Upon the successful completion of all 6 modules and tests registered clients will:

• Become a ‘Certified HAFA Specialist’, enhancing your HAFA credibility in the marketplace
• Have the opportunity to participate in AssetPlanUSA’s Certified HAFA Real Estate Professional Network for Servicer and AssetPlanUSA HAFA referrals
• Receive HAFA program and Servicer updates for 1 year
• Be able to print and keep a desk reference ‘HAFA Summary’, as well as 4 key HAFA example contracts
• • HAFA Short Sale Agreement (SSA)
  • HAFA Deed-In-Lieu Agreement (DIL)
  • HAFA Request for Approval of Short Sale (RASS)
  • HAFA Alternate Request for Approval of Short Sale (ARASS)

http://shop.assetplanusa.com/training.html

Hamp and Hafa ProgramsI've reviewed much of the Hamp and Hafa Programs and honestly, it seems tough to use it if the homeowner has a 2nd lien(2nd Mtg) on the home, or has already moved out, or is unemployed.

These 3 very REAL reasons occur in a majority of the short sales I've witnessed or have been involved with. Nonetheless, I’ve posted this information because there are those that MAY benefit and I wouldn’t throw any program out the door without reviewing the specifics of your sellers NEEDS!!

Now, little about "Hamp", this program is for loan modifications and generally involves the maximum payment of 31% of the sellers total income before taxes to be paid towards your loan. Once these numbers are established, proof of ability must be supported and then there is a 3 month test period to see how able the owner is to pay, dosnt work if unemployed, and it dosnt work in many cases. But, again, I would’nt throw anything away without review against their particular needs.

If the Loan modification fails or if an application to skip the loan modification is requested and accepted, then you can move right into a Hafa short sale program.

HAFA:The Good:

1-Homeowners will be released of all responsibility with a satisfaction of lien from the lender.(This is excellent,(many short sales may still hold owners liable for the deficient amount that the lender lost)

2-There is a "pre-aproved" short sale Listing along with the Minimum sales value. (Saves time, easier for buyers to buy!!!-The pre-aprovals are done in 10 days-YAY

3-Homeowners are given $3000.00 towards relocation from the lender at closing.( An excellent aide to families moving to their new home)

4-If the homeowner had attempted a Hamp Modification, then all the same docs and info will be used, no repetitive docs.-( This saves time!)

HAFA: The Bad:

1-The property can't be sold to a relative, friend or anyone with a close relationship to the seller.Must be an ARMS LENGHTH transaction, therefor a 90 day period must occer before an investor may re-sell.

2- The buyer may not re-sell the property for less than 90 days after closing. Nor can they rent the home back to the previous owner.

3-The difference between the remaining amount of principal you owe and the amount they receive from the sale must be reported to the Internal Revenue Service (IRS) on Form 1099C, as debt forgiveness. In some cases, debt forgiveness could be taxed as income. The amount paid to you for moving expenses ($3000) may also be reported as income. It is suggested that they contact the IRS or their tax preparer to determine if you may have any tax liability.I understand the 1099 will be issued.

4-If you have a real estate license you can’t earn a commission by listing your own property

5- The seller must also be able to deliver marketable title free of any other Jr. liens. They will allow up to three percent (6%) of the unpaid principal balance of each subordinate lien, in order of priority, not to exceed $6,000 in aggregate for all subordinate liens, to be deducted from the sale proceeds to pay subordinate lien holders to release their liens. They require each subordinate lien holder to release you from personal liability for the loans in order for the sale to qualify for this program.

6-The seller must live "IN" and maintain the property, HOA dues and or maintenance fee's. The seller will, in most cases be making payments up to a total of 31% of his gross monthly income

In the end, these programs may help some people… but it’s going to take a savvy realtor to help make it happen!!

Regards!!-- HOPE THIS IS HELPFULL!!!!!

Rose Mencia, Broker

Sundance Realty South Florida, Inc., 1926 Hollywood Blvd. suite 212, Hollywood, Fl. 33020 cell: 786-208--6804

Here are the basic eligibility requirements.

* The property is owner occupied.

*The mortgage loan is a first lien mortgage and originated on or before 1/1/2009.

*The mortgage is delinquent or default is reasonably forseeable.

*The current unpaid principal balanceequal to or less than $729,750.

*The borrower's total monthly mortgage payment exceeds 31% of his or her gross monthly income.

The lender must evaluate and offer a HAMP mod to borrower before consideration to HAFA options.

Do you know about the HAMP and HAFA regulations? Are You Aware this takes effect on April 5, 2010?

In response to an outcry for Uncle Sam to step in and provide uniform procedures for helping homeowners stay in their homes. This is how the HAFA, Home Affordable Foreclosure Alternatives Program, was born. HAFA is part of the HAMP, Home Affordable Modification Program. This provides incentives in connection with a short sale or a deed-in-lieu of foreclosure used to avoid foreclosure on a loan eligible for a modification under HAMP.
HAFA:
* Complements HAMP and provides a viable alternative for borrowers who are HAMP eligible but unable to keep their homes.
*Uses borrowers financial and hardship info previously collected for a mod.
*Allows borrowers to receive a pre-approved short sale prior to listing.
*Prohibits lenders from reducing real estate commission ( 6% )
*Requires borrowers to be fully released from future liability for the first mortgage ( no deficiency judgement is allowed).
*Uses set standard processes, documents and timeframe deadlines.
* Provides financial incentives: $1500 for borrower relocation assistance; $1000 for lender to cover admin and processing cost and up to $1000 for investors for allowing a total of up to $3000 in short sale proceeds to be distributed to subordinate lienholders.
The program begins on April 5, 2010 and ends on December 31, 2012.

You need to know who is eligible.

Are you ready?

Today's real estate market is ever changing. Here today and gone tomorrow. Unfortunately this applies to the homeowner AND the agent. I remember when I started in the business in 2004 with my CA Conditional License. I just knew I was going to be an immediate success and make a boatload of money just because I had the word "REALTOR" next to my name. Wow, was I in for a surprise!

Getting a listing was almost impossible because of the competition. Either you needed to be a veteran in the business, work on a successful team, work your tail off or get out there or do old fashion door knocking. Luckily for me I changed my approach and became a strategic buyer's agent. I used my knowledge of internet marketing to dive into the world of Craigslist, Backpage and Myspace. Building my online presence proved to be a great way to get into the door and grow my business.

We are now into 2010 and the game has changed tenfold. The homeowners of 2004 are now making the decision to either short sale or walk away from their investment. Yesterday's "premiere listing agent" is now having to be a counselor, an advocate for the bank and sometimes even a property management specialist.

With the Loan Exit Option before us, what are the tools of the trade that you will use to become "the expert" in your field in your local market? How will you lobby to get the new short sale business the banks are offering? How will you survive the new changes in the real estate market?

What's in your toolbox?

I attended the Five Star Short Sale Summit in Vegas. What an awesome conference and certification. There are many changes coming down the pike for short sales. Now that there has been stadardization put in place for short sales the time frame from contract to close will become more reasonable.

The changes being made will force some accountability on the lenders as well as the borrowers. These distressed home owners will not be going straight into foreclosure with HAMP and HAFA in effect.

It is for seen there will be many more short sales in the future and less foreclosures. The bottom line is you will need your Short Sale Certification to ramp up business. Do you have yours?