Short Sales in Texas

THE TIMEFRAME TO INITATE A REAL ESTATE FORECLOSURE RELAXES FOR THE UNEMPLOYED

Rodney McNabb — Fri, 08 Jul 2011 09:00:02 -0400

The Obama administration is making it easier for out-of-work homeowners to stay in their homes, as it tries to revamp its troubled foreclosure-prevention program. Starting Aug. 1, the Federal Housing Administration will extend the period for unemployed homeowners to miss mortgage payments to a full year from three or four months. That will allow qualified homeowners to go without making a monthly payment for 12 months before the foreclosure process begins. The extended grace period only applies to FHA-backed loans, which are usually given to low- and middle-income borrowers and represent about 14 percent of all active mortgages and roughly...

New FTC Rule Requires Short Sale Disclosures

Rodney McNabb — Sat, 26 Mar 2011 23:38:50 -0400

The Federal Trade Commission (“FTC”) has issued a final rule that may impact real estate professionals who represent clients involved in a short sale transaction. Depending on certain factors, the rules may require real estate professionals to make certain disclosures to consumers if they negotiate a short sale with a lender, advertise short sales experience, or take upfront fees from short sale sellers. The MARS rules took full effect on January 31, 2011. Background In November 2010, the FTC published the final Mortgage Assistance Relief Services final rule (“MARS rule”). The MARS rule is primarily directed at companies that offer...

Changes for Bank of America Short Sales

Rodney McNabb — Thu, 10 Mar 2011 17:28:08 -0500

As Bank of America continues to enhance the short sale process, real estate agents will notice changes when initiating a transaction in Equator, beginning March 11. What Is Changing: New fields will be required when initiating short sales in Equator. Agents should be prepared to provide the following information regarding the loan and the homeowner's situation: Loan Number New: Borrower First Name Borrower Last Name New: Property Best Contact Telephone Reason for Default New: Do you have a signed purchase contract? New: What is the property's primary purpose? New: Who currently occupies the property? New: When was the property last...

Treasury Department Modifies HAFA Program

Rodney McNabb — Fri, 18 Feb 2011 06:45:00 -0500

Important changes took effect yesterday in the government’s Home Affordable Foreclosure Alternative (HAFA) program. The Treasury Department has revamped its short sale program by easing income restrictions and documentation requirements for homeowners facing foreclosure to help streamline the HAFA process and make the program more accessible to homeowners. In the first eight months, only 661 short sales have been processed through the program. One of the most significant changes is the elimination of the requirement that the borrower’s total monthly mortgage payment exceeds a 31% debt-to-income ratio, a requirement that many industry professionals believe should never have been there in...

Can a Texas Short Sale Put $3k in Your Pocket?

Rodney McNabb — Mon, 14 Feb 2011 07:41:00 -0500

The treasury department has created the HAFA (Home Affordable Foreclosure Alternatives). This program is eligible to homeowners that would otherwise be eligible for the HAMP loan modification program, but due to extenuating circumstances are still unable to afford to keep the home. One of the requirements of a HAFA short sale is that the borrower be released from any future obligation on the first mortgage. This is important because it means that the lender can never turn around and demand that the borrower pay the difference in sale price to loan amount. They are not allowed to accept any cash...

Foreclosures decrease in 2010 due to short sales and modifications

Rodney McNabb — Fri, 11 Feb 2011 11:48:26 -0500

Nevada saw a 19 percent decrease in foreclosure starts in 2010 -- the first drop in four years -- as more short sales and loan modifications were approved, an annual summary from San Francisco-based Fore- closureRadar showed. The online foreclosure tracking firm counted 86,010 filings of new foreclosure actions last year, down from 106,425 in 2009. They're up from 75,814 and 38,690 the previous two years. California and Arizona foreclosure filings fell 33 percent and 18 percent in 2010, respectively, while Washington and Oregon had 14 percent and 10 percent more. A number of factors have slowed the foreclosure process...

Do Tenants Have Protection in Short Sales

Rodney McNabb — Fri, 11 Feb 2011 11:32:38 -0500

Question: I have rented a house for several years. The current owner told me that he is going through foreclosure. He says that he is about to conclude an agreement to allow a "short sale" of the property, which I understand allows the house to be sold for less than the amount of the mortgage. I thought there were special protections for tenants who are caught up in foreclosures. Are there any special protections for me if there is a short sale? Answer: There is a federal law, the Protecting Tenants at Foreclosure Act, which gives additional rights to "bona...

HAFA Changes | Supplemental Directive 10-18 | December 28, 2010

Rodney McNabb — Thu, 13 Jan 2011 23:18:37 -0500

Supplemental Directive 10-18 December 28, 2010 Home Affordable Foreclosure Alternatives Program – Policy Update In February 2009, the Obama Administration introduced the Making Home Affordable (MHA) Program to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure. In March 2009, the Treasury Department (Treasury) issued uniform guidance for loan modifications by participants in MHA across the mortgage industry and subsequently updated and expanded that guidance to include the Home Affordable Foreclosure Alternatives Program (HAFA) to provide borrowers with an alternative to foreclosure through a short sale or deed-in-lieu (DIL) of foreclosure when a loan modification is...

Texas Short Sales | 3 Most Aggravating Parts for a Listing Agent

Rodney McNabb — Mon, 23 Aug 2010 19:16:40 -0400

1) A lender that does not care and shows it by not returning phone calls or emails, and lets a property to go into foreclosure due to their lack of responsiveness; 2) Uneducated real estate agents that perform BPO's for lenders. The majority of these agents have no real experience in pricing distressed properties, yet the lenders are relying on the agent's valuation as if it was gospel. To be a BPO agent, you do not need any formal training (other than a real estate license) and they are paid in the range of $40 to $65 to perform this...

HAFA Provisions

Rodney McNabb — Sun, 22 Aug 2010 21:35:13 -0400

Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home. Uses borrower financial and hardship information already collected in connection with consideration of a loan modification. Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds). Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed). Uses standard processes, documents, and timeframes/deadlines. Provides the following financial incentives: $3,000 for borrower relocation assistance; $1,500 for servicers...