• Home
  • home affordable modification program

Tag Archive

Tag Archives for " home affordable modification program "
1

Gainesville – Principal Loan Reduction

Gainesville – Principal Loan Reduction

Last Thursday, eleven Democratic Attorney generals sent a letter to the Federal Housing Finance Agency (FHFA) requesting for an abrupt implementation of principal loan reduction by GSE- related mortgages.

The letter was addressed to the agency’s acting director, Edward DeMarco. It argues that principal forgiveness could not shake the financial stability of Fannie Mae and Freddie Mac, and it could even save as much as $1.7 billion.

DeMarco announced last week that it is possible that FHFA would come up with the mortgage principal forgiveness plan come this April. FHFA is currently in the process of making evaluations for added incentives from the Treasury Department so as to write-down the loan principal under the Home Affordable Modification Program – HAMP.

However, after the preliminary analysis have been released last Tuesday, mortgage policy analyst has have contradicting expectations on principal loan reduction by Fannie Mae and Freddie Mac.

The letter further stated that the incentive payments to investors in return for allowing forgiveness under the Home Affordable Modification Program – HAMP have been increased and because of this, concerns on the potential impact on the financial stability of GSEs should lessen. It added that principal forgiveness programs will greatly help borrowers, communities, and the creditor’s revenue.

The Attorney Generals highlighted that in the past five years, more than five million people lost their homes due to foreclosure. They also emphasized that Fannie and Freddie Mac, having owned the majority of the nation’s home loans, should lead the move on loan modifications so as to uplift the general housing economy and not serve as hindrance.

It was the Attorney Generals of California, Delaware, Illinois, Iowa, Maryland, Minnesota, New Mexico, New York, Oregon and Vermont who have signed the above-mentioned letter.

This is the second letter sent to DeMarco within the past two months. The letter added more facts to the first letter sent and is now supported by 10 more attorneys general, proving a growing consensus around this issue.

We remember that last February, the attorney general of Massachusetts, Martha Coakley, urged the FHFA to allow for principal loan reduction to increase loan modifications and help strengthen the housing economy.

This could help Gainesville Homeowners facing foreclosure work out options to stay in their home. We will need to watch the outcome closely!

Other Articles to Read:

What is a Short Sale?

Short Sale Process – What to Expect

Short Sale Top 10 Questions

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

Gainesville Short Sales – What is HAFA?

Gainesville Short Sales – What is HAFA? HAFA Program…an alternative option to foreclosure. Foreclosure is a very difficult experience for a homeowner to endure. If you are a homeowner facing foreclosure we understand that exploring all alternative options is very important. We are fortunate that there are alternatives out there when facing foreclosure.

A short sale on your home is normally the best alternative for foreclosure for most homeowners. If you are in the process of doing a short sale or deed in lieu on your home, and have been turned down for a loan modification, there is a program out there offered by the government called the HAFA Program.

HAFA stands for “Home Affordable Foreclosure Alternatives”. The Treasury Department introduced the HAFA Program in 2009, as an option for homeowners that were not able to keep their home through the existing HAMP Program, which stands for “Home Affordable Modification Program”. The HAFA Program took effect on April 5th 2010 and will continue through December 31, 2012.

The HAFA Program was designed to compliment the already existing HAMP Program or “Home Affordable Modification Program”. This program was set up to provide an alternative option for current homeowners who are HAMP eligible however, still for whatever circumstance is not able to keep their home. HAFA uses the homeowners financial and hardship information that was already collected when the borrower applied for a loan modification.

HAFA allows the homeowner to receive pre-approved short sale terms before listing their home and allows the homeowner to be released from liability down the road on their first mortgage note.

HAFA Program provides the borrower (homeowner) financial incentives, if they qualify for this program. A few of the incentives include a relocation assistance package of $3,000, administrative and processing costs of $1,500 to the servicers handling the short sale and up to $2,000 for investors who give a total of up to $6,000 in short sale proceeds. These proceeds are to be given to subordinate lien holders.

The HAFA program has requirements for all servicers that participate in the HAMP Program. HAMP program participants will need to implement HAFA in accordance with their own written policy. This will also need to be consistent with the investors guidelines. In short policies and guidelines may vary per financial institution.Each financial institution is given the opportunity to make their own interpretation of the HAFA guideline book.

HAFA Program guidelines have changed twice since January and there is always a possibility for more change. We cannot stress the importance in making sure that you do your homework, and choose an experienced and knowledgeable licenced real estate agent. This is important because not just any agent will be able to maneuver you through the process of a successful short sale, and other foreclosure options.

When dealing with government programs there is a lot of red tape to get through, and time lines to meet. To find out more about the HAFA Program and other alternatives to foreclosure contact our office with any and all questions that you may have. Our agents are experience and knowledgeable in short sales and programs like HAFA.

Other Articles to Read:

Loan Modifications For Gainesville Short Sale

Banks Are Calling Homeowners To Solicit Short Sales

What Gainesville Underwater Homeowners Say

Short Sale Agents in Gainesville Encourage Homeowners To Take Action

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.