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?

Loan Exit Option Program aka LEO Homtelos

Posted by Jonathan on October 1, 2009 at 8:55pm

There are so many great things to say about the Loan Exit Option program, I don't know where to begin. So I will start from the beginning. When I was initially approached to participate in the pilot of this program, my biggest concern was the stigma that word Short Sale have. Traditional short sales on average take 60 days before a negotiator is assigned to the file. Then an additional 60 days and multiple BPO's before an approval is rendered. By this time buyers are frustrated, sellers are discouraged and the property may or may not be on the chopping block to be sold on the court house steps. Good luck trying to get it postponed if you haven't been assigned a negotiator, and in some cases even when a neog is assigned the property still ends up being foreclosed. This is all too common and what many Realtors and homeowner associate with the word short sale.Having successfully sold five short-sales through the Loan Exit Option program, several short sales the traditional method, as well as with 3rd party negotiators; I can honestly say, Hometelos LEO is by far the most efficient and should be the only way short-sales are sold. On average, within 10 days of initial assignments these properties were placed active on the market with a conditional Settlement Letter on File. I'm 100% positive, marketing these properties as PRE-APPROVED Short Sales, as well as their exceptionally well maintained condition, were the reasons each and every one of them had multiple offers within the first 7 to 10 days on the market. Not only did they have multiple offers, but they all closed and qualified for buyers with FHA financing..Part of the home owner’s responsibility for participation in the program is that the property must be in marketable condition.One of my assigned properties was denied entry into the program until it was brought to a marketable condition by the owner. Within a week the owner brought the property to marketable condition and it was allowed to be placed into the program. This is similar to what REO Brokers refer to as Cash for Keys (CFK) with bank owned properties. The only difference is no cash is given to the owner or previous occupant. The incentive to the owner is they are being allowed to short sale their property instead of having it foreclosed (savings the bank thousands of dollars in fees that would be spent to foreclose, clean, maintain and evict, as well as, several thousand in declining home values that vacant homes are prone to.), and in cases when they are living in the property, they will be given a settlement for relocation upon sale. In a CFK situation the previous owner is given money regardless of the sale of the home, as long as it is left in broom swept condition.Unfortunately many REO (Bank Owned) properties will not qualify for FHA financing due to their inferior condition, and this results in properties selling for lower than what that would if they were in better condition. This is great for investors, and cash buyers that can make improvements, but terrible for comparable values and fist time FHA home buyers.As an experienced Realtor/Broker and REO broker, I can honestly say LEO will play a critical and role and be on the forefront on bringing about stabilizing and appreciating housing values across the nation. I don't know, nor have I heard of any other operation doing what we have already done with LEO. I'm looking forward to our recovery as we approach 2010 with Leo on the forefront. Lenders, Banks, Loss Mitigators, if you haven't got on the shuttle, you should hurry as we are counting down for take off.. You don't want to miss this shuttle!!For more information on Hometelos Leo visit www.hometelos.com www.code3realty.com www.firstpreston.com

Pre-Approved Shortsales Breaking Out?

Posted by Jonathan on April 10, 2009 at 7:27pm

Well, I've bloged about this several months ago. Pre-Approved Short Sales!! I closed my first one 2wks ago and from list to close total time was 40 days. Yes 40 days, I recieved a list price 96 hours after submitting my BPO, which was priced 10K below my BPO value. I got multiple offers within he first7 days on the market and the property sold for 5K more than list price (Closer to my BPO value). My local board rules require us market any short sale as such, which in the past and sometimes hinders offers beacuse all of us know that there is nothing short about a traditional shortsale.This did not increase the time on the Market, as we advertised it as a HomeTeleos Pre-Approved Short Sale. This program has officially launched and you may see it in a City or County near you. Its true when you see HomeTeloes Pre-Approved short sale, then really are short sales. www.hometeleos.com I'd love the hear from anyone else if they are doing anything similar or have heard of any similar programs launching. I think it will be a matter of time before others follow if they have not already done so.

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