Fannie Mae And Freddie Mac Implement Hafa Short Sale program Part 2

Asset - Fannie Mae And Freddie Mac Implement Hafa Short Sale program Part 2

Good morning. Yesterday, I discovered Asset - Fannie Mae And Freddie Mac Implement Hafa Short Sale program Part 2. Which may be very helpful to me and you. Fannie Mae And Freddie Mac Implement Hafa Short Sale program Part 2

This narrative is part 2 and is a continuation of Fannie Mae And Freddie Mac Implement Hafa Short Sale Program.

What I said. It is not the conclusion that the true about Asset. You check out this article for info on anyone wish to know is Asset.

Asset

This narrative picks up where Fannie Mae And Freddie Mac Implement Hafa Short Sale program part 1 left off

The Major Drawbacks Are Also The Same As The Non-Gse Program:

- Partial Mortgage Payments Required: The lender can still want partial mortgage payments from the borrower up to 31 percent of the borrower's gross monthly income. For a estimate of borrowers, this could be a major detraction from the short sale program. We will see how firm the lenders/servicers are with this issue.

- Short Response Time: The borrower must retort within 14 days once the servicer says 'you are eligible' - that's simply not enough time for most borrowers.

- estimation For Hamp Required: As with the former Hafa program, the new Fannie and Freddie Hafa program requires borrower to go straight through the Home Affordable Modification program (Hamp). If the borrower fails the Hamp estimation or doesn't faultless their modification plan, the servicer will offer a Hafa short sale or deed-in-lieu. Some borrowers already know they can't qualify or simply don't want a modification. Getting around this required Hamp screening is approximately impossible even where the guidelines propose you can make an "alternative" invite for short sale Without the Hamp analysis (let's see if the lenders/servicers loosen up on this).

- Junior Lien owner Trap. One of the biggest hurdles to every single short sale is getting approval from the junior lien holder. The junior lien owner is not subject to the terms of the Hafa program. Therefore, they can put up a roadblock to any short sale. The Gse Hafa program suffers from the same problem.

- Plus... The Gse Hafa programs prohibit servicers from inspecting or soliciting a borrower for Hafa if a foreclosure is scheduled to be held within 60 days. There is an leave clause to this prohibition and I hope it is ordinarily used because most homeowners don't seek assistance until very late in the process. We typically see homeowners show up after the home has been scheduled for sale (in Ca, that's 21 days out).

Anti-Strategic Default Provisions:

Although all Hafa programs want the borrower have a hardship (which is to be detailed in their hardship letter), the Gses step up the analysis of the financial hardship of the borrower. The Gse Hafa program contains a fairly specific estimation of whether the borrower is attempting a strategic default (i.e. Is walking away/short selling even though they can afford the mortgage). Although it is good practice to limit the moral hazard of the strategic default, these provisions will unquestionably ensnare a estimate of borrowers that truly have a hardship but fail the analysis set forth below.

The servicer must evaluate:

- The borrower's financial health to determine whether the borrower has an capability to "contribute meaningfully to reducing the possible loss" (who defines "meaningful"...? Not the borrower, that's for sure).

- The borrower's capability to continue manufacture the mortgage payments even if the borrower chooses not to do so.

- whether the borrower has mammoth unencumbered assets or indispensable cash reserves equal to or exceeding three times the borrower's total monthly mortgage cost (including tax and assurance payments) or ,000, whichever is greater.

- whether the borrower has "high surplus" income.

It is going to be very important for real estate agents and short sale processors to pay close attentiveness to the borrower's financial situation in order to ensure compliancy with these guidelines.

Although I'm hopeful about the Gses' implementation of Hafa, I am also realistic that it is going to take time to get everyone on the same page.

For more information, please watch our webinar "Foreclosures & Short Sales: Navigating the Minefield" at www.LawyersRealtyGroup.com.

I hope you receive new knowledge about Asset. Where you can put to utilization in your day-to-day life. And most significantly, your reaction is passed about Asset. Read more.. Fannie Mae And Freddie Mac Implement Hafa Short Sale program Part 2.