Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

What does this mean to the person who owes more on their home than it’s worth? It means you may be able to walk away from your short sale without a deficiency. Contact Vickie Nagy at (925) 407-7987 to discover the impact this new bill can have on your financial freedom.

The Treasury Department is offering a free online calculator that helps borrowers estimate whether or not they qualify for the Home Affordable Modification Program ( HAMP). The calculator is available at http://www.checkmynpv.com

This tool assists with determining Net Present Value. NPV stands for net present value, a calculation which indicates how much an investment, such as a bond or a mortgage, is worth today. Find out more about Net Present Value here.

CheckMyNPV.com is designed to assist homeowners in conducting a net present value (NPV) evaluation of their mortgage for the Home Affordable Modification Program (HAMP). This tool can also be used by homeowners prior to applying for a HAMP modification to help them better understand the NPV evaluation.

Section 2 of Chapter IV is amended to include the following changes in the chart related to HAFA eligibility:  Under financial hardship, it reads “A borrower has documented a financial hardship, evidenced by a signed Hardship Affidavit or RMA, wherein the borrower has represented that he or she does not have sufficient liquid assets to make the monthly mortgage payments.”

You can see a copy of Form 1021 Home Affordable Modification Program Hardship Affidavit here. It’s recommended that borrowers use this form to document their financial hardship in connection with the Home Affordable Modification Program.

If you review Form 1021, note that on page 1 it asks the reason for the hardship and an explanation, and that by signing page 2, you are saying that your statement is truthful, and you are giving the right to the servicers to verify both personal and financial information. 

The Homes Affordable Program will not help those individuals with assets/high net worth. The borrower need be delinquent or becoming delinquent in the forseeable future with cause.
Call for your free consultation with a caring, knowledgable real estate professional today! Call Vickie Nagy at (925) 407-7987, or Contact Vickie Nagy by e-mail! CA DRE#01363932, BMR Real Estate | 4115 Blackhawk Plaza Cir, Suite 100 | Danville, CA 94506

Vickie Nagy is HAFA Certified, a CDPE Certified Distressed Property Expert and PSC Pre-Foreclosure Specialist Certified.

Vickie Nagy concentrates on helping sellers reach a successful short sale in San Ramon CA, Dublin CA, Danville CA and Pleasanton CA.

Making Home Affordable begins with an effort to keep borrowers in their home via refinance and loan modifications. There’s even a special segment for unemployed homeowners. HAFA short sales may be undertaken if the loan modification fails or if refinance is not an option.

Homeowners must be evaluated for HAFA short sales within 30 calendar days of the following:
•The borrower does not qualify for HAMP.
•The borrower does not successfully complete a HAMP Trial Period.
•The borrower is delinquent on a HAMP modification.
•The borrower requests a short sale or Deed-in-Lieu of Foreclosure.

However, before evaluating a homeowner for HAFA, a participating servicer must first consider the homeowner for other loan modification or retention programs that they offer. In addition, pursuant to the servicer’s policies, every eligible homeowner must be considered for HAFA by a participating servicer before the homeowner’s loan is referred to foreclosure and before the servicer may allow a pending foreclosure sale to continue.

Call for your free consultation with a caring, knowledgable real estate professional today! Call Vickie Nagy at (925) 407-7987, or Contact Vickie Nagy by e-mail! CA DRE#01363932, BMC Real Estate | 4115 Blackhawk Plaza Cir, Suite 100 | Danville, CA 94506.

Vickie Nagy is HAFA Certified, a CDPE Certified Distressed Property Expert and PSC Pre-Foreclosure Specialist Certified.

Vickie Nagy concentrates on helping sellers reach a successful short sale in San Ramon CA, Dublin CA, Danville CA and Pleasanton CA.

How Does a DIL Work?
Title.—You and all other occupants must vacate your Property and provide clear and marketable title with a general warranty deed or local equivalent by [insert future date at least 30 days after the date of this Agreement].
• You must also be able to deliver marketable title free of any other liens. The program will contribute up to a total of $6,000 toward paying off any subordinate lien holders.
• The program requires that each subordinate lien holder release you from personal liability for the loans in order for the sale to qualify for this program, but the lender/servicer/investor will not take any responsibility for ensuring that the lien holders do not seek to enforce personal liability against you. Therefore, we recommend that you take steps to satisfy yourself that the subordinate lien holders will release you from personal liability.

Property Condition. You must leave the house in broom clean condition, free of interior and exterior trash, debris or damage, and all personal belongings must be removed from the Property. The yard must be clean and neat and you must deliver all the keys and controls (e.g., garage door openers) to the lender/servicer.

Transfer/Closing.—You may be required to sign standard pre-closing documents as well as attend a closing of the transfer of your Property where all borrowers on the mortgage must be present.

Deed-in-Lieu (DIL) Agreements between servicers and borrowers that provide an option for the borrower to continue to occupy the property on a rental basis (deed-for-lease) or provide an opportunity for the borrower to repurchase the property at some future time are also eligible for financial incentives under HAFA, so long as all other program requirements are met.

HAFA is Home Affordable Foreclosure Alternatives Program. See Basic HAFA Requirements Here

At the discretion of the servicer in accordance with investor guidelines, the borrower relocation incentive may be paid either upon the successful closing of the DIL or at a future time when the borrower vacates or repurchases the property. Servicers offering programs of this type must include program descriptions and conditions in their HAFA Policy.

Conditional DIL agreements that allow a borrower to reinstate the original loan following some period of rental occupancy are not eligible for HAFA incentives unless and until the DIL is final and the borrower no longer has the option of reinstating or modifying the original first mortgage lien.

For Short Sale help in San Ramon, Dublin CA, Pleasanton call for your free consultation with a caring, knowledgable real estate professional today! Call Vickie Nagy at (925) 407-7987, or Contact Vickie Nagy by e-mail! CA DRE#01363932, BMC Real Estate| 4115 Blackhawk Plaza Cir, Suite 100 | Danville, CA 94506.

Vickie Nagy is HAFA Certified, a CDPE Certified Distressed Property Expert and PSC Pre-Foreclosure Specialist Certified.

Vickie Nagy concentrates on helping sellers reach a successful short sale in San Ramon CA, Dublin CA, Danville CA and Pleasanton CA.

The borrower’s reason for relocation will no longer need to be connected to re-employment or transfer of employment. Also, there is no longer a minimum distance requirement. Servicers are not required to verify the number of miles the borrower moved from the property.

The existing policy is that property could not be vacant or rented more than 90 days prior to the short sale application. Relocation was an acceptable reason only if employment related and limited to 100 miles.

Bottomline: Some individuals that could not previously complete a HAMP loan modification or HAFA short sale may be eligible beginning February 1, 2011.

Call for your free consultation with a caring, knowledgable real estate professional today! Call Vickie Nagy at (925) 407-7987, or Contact Vickie Nagy by e-mail! CA DRE#01363932, BMC Real Estate | 4115 Blackhawk Plaza Cir, Suite 100 | Danville, CA 94506.

Vickie Nagy is HAFA Certified, a CDPE Certified Distressed Property Expert and PSC Pre-Foreclosure Specialist Certified.

Vickie Nagy concentrates on helping sellers reach a successful short sale in San Ramon CA, Dublin CA, Danville CA and Pleasanton CA.

I like to think of HAFA Short Sales as ‘Short Sales with Benefits’ as the $3000 borrower relocation assistance comes in quite handy. After all, having a short sale means you have a financial hardship! It takes money to move, and money to pay the rent for your new home. (Traditional short sales do not include relocation assistance.)

Here’s a link to the HAFA Borrower Eligibility Check List. Download it, and when you’re ready to move forward, contact me to discuss your particular situation and how we can get you moving!

The first step to a HAFA Short Sale is to apply for a HAMP Loan Modification.

See if your lender is on the list of servicers participating in HAMP Loan Modifications and HAFA Short Sales.

Call for your free consultation with a caring, knowledgable real estate professional today! Call Vickie Nagy at (925) 407-7987, or Contact Vickie Nagy by e-mail! CA DRE#01363932, BMC Real Estate | 4115 Blackhawk Plaza Cir, Suite 100 | Danville, CA 94506.

Vickie Nagy is HAFA Certified, a CDPE Certified Distressed Property Expert and PSC Pre-Foreclosure Specialist Certified.

Vickie Nagy concentrates on helping sellers reach a successful short sale in San Ramon CA, Dublin CA, Danville CA and Pleasanton CA.

Over one hundred mortgage companies have agreed to participate in the Home Affordable Modification Program (HAMP).

HAMP provides eligible homeowners the opportunity to modify their mortgages to make them more affordable. HAMP eligible borrowers unable to complete HAMP are to be considered for HAFA Short Sale and Deed-in-Lieu of foreclosure options before foreclosures.

Below is a list of companies who are participating* as of January 6, 2011 and the contact information for submitting an application.
*In addition, all mortgage companies with loans owned by Fannie Mae and Freddie Mac are required to participate.

The first step to a HAFA Short Sale is to apply for a HAMP Loan Modification.
Call for your free consultation with a caring, knowledgable real estate professional today! Call Vickie Nagy at (925) 407-7987, or Contact Vickie Nagy by e-mail! CA DRE#01363932,BMC Real Estate | 4115 Blackhawk Plaza Cir, Suite 100 | Danville, CA 94506.

Vickie Nagy is HAFA Certified, a CDPE Certified Distressed Property Expert and PSC Pre-Foreclosure Specialist Certified.

Vickie Nagy concentrates on helping sellers reach a successful short sale in San Ramon CA, Dublin CA, Danville CA and Pleasanton CA.
A list of HAMP Mortgage Servicers follows, complete with contact information!

Basically, after home retention options have been explored , most notably through Home Affordable Modification Program (HAMP), the Home Affordable Foreclosure Alternatives (HAFA) provides standard processes, documents and timelines along with incentive to servicers, borrowers and investorrs to enable short sales and deeds-in-lieu of foreclosure.

This program is effective through December 31, 2012 and requires that all HAMP eligible borrowers who were unagle to complete HAMP be considered for HAFA options before foreclosure.

Some of the basic eligibility requirements are similar to those for HAMP:

• The property is the borrower’s principal residence
• The morgage loan is a first lien mortgage originated on or before January 1, 2009
• The mortgage is delinquent or default is reasonable forseeable
• The current unpaid principal balance is equal to or less than $729,750 for a one-unit property
• The borrower’s total monthly mortgage payment* exceeds 31% of the borrower’s gross income

There must be a documented hardship. A benefit for borrower’s is that the program requiremes borrowers to be fully released from future liabiltiy for the first morgage debt, and if the subordinate line holder receives a payment from the first lien holder to enable the transaction, that debt as well. No cash contribution, promissory note or deficiency judgement is allowed.

If you’d like to know more about the Home Affordable Foreclosure Alternatives (HAFA) program and how to participate, Contact Vickie Nagy by e-mail! or call (925) 407-7987 to request your free, no-obligation consultation today!

Vickie Nagy concentrates on helping borrowers sell short and reach a successful short sale in San Ramon CA, Dublin CA, Danville CA and Pleasanton CA.

Vickie Nagy is HAFA Certified, a CDPE Certified Distressed Property Expert and PSC Pre-Foreclosure Specialist Certified.

BMC Real Estate | 4115 Blackhawk Plaza Cir, Suite 100 | Danville, CA 94506.