Finally! Some Common Sense in This Sea of Foreclosure Paperwork and Confusion!
The Home Affordable Foreclosures Alternatives â€“ Short Sales and Deed-in-Lieu of Foreclosures Federal Guidelines
If you have been watching the news, you know that there has been a lot of talk about federal guidelines for Short Sales and Deed-in-Lieu of Foreclosure, coming from the Treasury Department. The supplemental directive was released on November 30, 2009 and today I was privileged to sit on a webinar from the National Association of Realtors about this new information, which will be effective April 5, 2010.
Iâ€™d like to touch on just a few of the highlights of this directive, which are below.
Homes Affordable Modification Program – Loan Modification
- Loan must be from the primary residence and canâ€™t be a Fannie Mae or Freddie Mac Loan
- Unpaid principal balance no more than $729,750
- Borrowerâ€™s monthly payments exceed 31% of gross income in order to qualify for HAMP
Homes Affordable Foreclosures Alternatives Program â€“ Short Sale and Deed-in-Lieu
- Upon closing of a Short Sale acceptable to the servicer, the borrower will be released from all liability for repayment of the first mortgage debt.
- Upon successful closing of a Short Sale, acceptable to the servicer, the borrower will be entitled to a relocation incentive of $1,500.
- A Short Sale Agreement is completed between the borrower and the servicer, that as long as the borrower performs in accordance with the terms of the SSA, the servicer will not complete the foreclosure sale.
- Provides financial incentives to servicers and borrowers who utilize a short sale to avoid foreclosure on an eligible loan under HAMP.
Please feel free to contact me if you would like more in-depth information, a copy of the guidelines or would like to discuss doing a Short Sale in Kauai. I have been fortunate to do many Short Sales here on Kauai, and I am very excited about the new guidelines as they will certainly make the transaction easier for some folks who really do need help.