A new government program helps ease the short sale process.  The Home Affordable Foreclosure Alternatives (HAFA) program has set new rules that make the long, arduous process of a short sale much more streamlined and effective.  How is this possible?  For one thing, HAFA offers mortgage companies incentives to participate in their program.  If you are in danger of foreclosure, have tried a loan modification through the HAMP program but have not been successful and need to sell your home for less than you owe before the bank takes it back, the HAFA program may be able to help.

Previously, homeowners didn’t know the minimum amount a bank would accept.  So, they would put their home on the market at a price they thought was OK and had to wait for the mortgage company to approve or reject the offer.  This process could take several months.  But through the HAFA program, homeowners are allowed to get a preapproved agreement from the bank on the terms they are willing to accept.  Another great outcome through the HAFA program is that the lender also must accept the proceeds from the short sale as payment in full for the seller’s loan.  They cannot try to collect the remaining balance after the sale is completed.

For homeowners to qualify under the HAFA rules, the property must be their primary residence, they have tried to do a HAMP loan modification, the mortgage was originated before January 1, 2009, the homeowner is either delinquent on payments or is in danger of foreclosure, the monthly mortgage payment is more than 31% of the homeowner’s gross income, the balance of the loan is under $729,750 and the homeowner can prove hardship.  Only mortgages guaranteed by Fannie Mae or Freddie Mac will be considered.

Take advantage of the HAFA government program to ease the short sale process.  If you are looking at purchasing or selling a home in a short sale in the Hendersonville real estate market, please contact me today.  I can help you!

Don't get a lemon. Contact Rich Cooke for all your Hendersonville real estate needs.

HUD, FHA, Fannie Mae and Freddie Mac are ready and willing to help all homeowners and homebuyersEven though the credit markets have been frozen, homebuyers can rest assured that the FHA, Fannie Mae and Freddie Mac are still open for business during the credit squeeze.  In fact, FHA’s volume has tripled.  They are even insuring over 100,000 new loans a month.  According to a spokesperson with HUD, FHA, Fannie Mae and Freddie Mac have kept liquidity up for new homebuyers and have virtually unlimited funds for new mortgages.  Combined, these three entities control 90% of US mortgages.  The credit crunch will not affect homebuyers with at least a 3% down payment, a documentable employment record and moderately good credit rating.  While business and commercial loans have been a bit harder to come by in the last few weeks, qualified homebuyers looking to purchase or refinance mortgages haven’t had that trouble.

HUD’s Financial Stability Oversight Board’s primary responsibility over the next several weeks will be to refinance or help work out delinquent subprime homes financed by private lenders during the previous boom years.  Their Hope for Homeowners program is set up to cut the principal and monthly payments and interest rates of delinquent loans through refinancing into fixed rate FHA mortgages.

The government has also infused HUD with $3.9 billion to create a Neighborhood Stabilization program.  This program allows HUD to provide funds to local governments to buy, fix up or rent out foreclosed homes in an effort to ease neighborhoods where the high volume of foreclosed homes has brought a decrease in home values.  The Neighborhood Stabilization program offers local governments the ability to play a role in fighting the sluggish housing market and provides an opportunity for real estate agents, builders and investors to profit in the turnaround efforts.  For those interested in the Neighborhood Stabilization program, speak with your local city or county housing officials for more information.