Ann Arbor Area Residents, New Rules for Short Sales
Ann Arbor Area Residents there are some new rules for Short Sales. As I have posted before make sure the Realtor you hire has experience in the Short Sale process.
Don’t be afraid to ask them how many short sales they have done in the past and how successful they were.
The HAFA (Home Affordable Foreclosure Alternatives Program) The program was began on April 5th and will continue until December 31st, 2012.
The key points are:
- 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 time frames/deadlines.
- Provides the following financial incentives:
- $3,000 for borrower relocation assistance;
- $1,500 for service agencies to cover administrative and processing costs;
- Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
The video goes into more details, so if you are reading this and struggling with your mortgage, and experiencing a hardship the HAFA Program may be a good solution for you.
Missy it will be interesting to see if the pre-approved sale price under the new program will make sense or not. I fear we are getting to be fighting a new battle of getting property priced where they should be!
Bill according to the video, we can negotiate based on comps. I would hope the agents can defend their pricing.
I recently had an e-mail from a guy who, after 8 months, got a short-sale approval letter that included language that granted the lender the right to pursue the remaining balance on the second trust after closing. Hmmm… sounds like they aren’t up on the HAFA or they are getting his agreement in writing now so they can pursue him in 2013 and beyond!