New Guidance for Short Sales

Beginning April 5, 2010 the lenders (who participate in Home Affordable Modification Program "HAMP") will have new guidance for conducting Short Sales and Deed-In-Lieu. The new guidance is part of the Home Affordable Foreclosure Alternatives Program (HAFA). Under this program the lenders:

1) Will not be able to require a cash contribution or promissory note from borrower;
2) Will no be able to pursue a deficiency judgment against the borrower;
3) Will use the borrower's financial and hardship information, collected in conjunction with HAMP program (the borrower will not have to resubmit these items);
4) Will send to the borrowers the pre-approval of short sale terms before the property is listed;
5) Will not be able to cut the REALTORS commission;
6) Will use standard processes, documents and timeframes;
7) Will provide financial incentives to borrowers, investors and services.

In order for the loan to qualify to the HAFA program, it needs to meet the following criteria:
- The property must be the borrower's principal residence;
- The loan must be the first lien mortgage, and must be originated on or before 01/01/2009;
- The current unpaid principle balance should be no more than $729,750;
- The total monthly mortgage payment should exceed 31% of the borrower's gross income;
- Mortgage is delinquent or it can be foreseeable.

As always, if you have any questions regarding this posting or other Short Sale/Real Estate topics, please feel free to call me or write me a quick e-mail.

Ihor Pochay
Realtor / Short Sale & REO Specialist
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 364-9005 Ext. 471
Fax: (909) 364-9262
ihorpochay@tarbell.com
http://www.myrealtorihor.com/
www.shortsaleyourhome.blogspot.com/
Twitter: @ihorpochay

A National Epidemic of Short Sales

Are you stressed out about mortgage payments? Do you think your only option is a foreclosure? Is a short sale right for you? Millions and millions of homeowners are asking themselves the same questions. It is projected that more than 20,000,000 homeowners will have negative equity in their homes in the very near future. In other words, they will owe more on their homes than the homes are actually worth. More than 2.9 million homes have foreclosed in the last three years and the number is only expected to grow. Expect the effects of the estate recession to ripple for years to come.

What can you do now?

There is expected to be massive tsunami of homeowners who are simply making the decision to sell their homes through a short sale vs. staying in a home, hoping that one day it may be worth what they paid.

No one is safe. News stories from across the country tell the tales of both celebrities and average Americans who are all considering selling their homes through a short sale.

Selling your home through a short sale doesn’t need to be shameful, life-ruining experience. Sometimes short selling your mortgage simply makes smart economic sense, especially for homeowners who find themselves "upside down" — that is, they owe more on their mortgage than their house is worth.

To find out if you qualify to sell your home in a Short Sale transaction, call me today at (562) 334-7393.

Ihor Pochay
REALTOR / SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext. 339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com