Replies to This Discussion

Permalink Reply by Victoria Frieberg on March 15, 2010 at 7:03am

I am assuming that is what we do. the other lenders will most likely start to streamline their own programs to fit..but you never know! I have a first lien holder that is Fannie, a second that is not in the program..so from what I can tell, this small town bank does not have to follow any of the new Hafa rules..right?

Permalink Reply by Steele V. Propp on March 20, 2010 at 6:41am

That is correct, Victoria. Secondary liens don't have to participate and I think we will not see them do so unless they are part of the program (used TARP monies). Especially smaller banks and lenders. No offense to HAFA but $3,000 is less and less attractive to seconds. Even with a few bucks from HAFA on top. Many of these lenders are in a position to do judgements and have 3-5 years to file. That is worth money. Shoot, most could sell the debt to a collection agency and do better (my opinion).

But we will see.

The thing to understand is that there are a lot of loopholes in this program. We are all hoping for good things and that the lenders will realize that standardization could be a good thing.

Oh, yesterday I heard that Fannie Mae and Freddie Mac WILL be participating in HAFA. If so, at least most short sales with just one lien (50%) will be eligible.

Permalink Reply by Steven Jackson on March 23, 2010 at 8:11am

Where did you hear about Fannie/Freddie participating in HAFA (link?)

Steele V. Propp said:

That is correct, Victoria. Secondary liens don't have to participate and I think we will not see them do so unless they are part of the program (used TARP monies). Especially smaller banks and lenders. No offense to HAFA but $3,000 is less and less attractive to seconds. Even with a few bucks from HAFA on top. Many of these lenders are in a position to do judgements and have 3-5 years to file. That is worth money. Shoot, most could sell the debt to a collection agency and do better (my opinion).

But we will see.

The thing to understand is that there are a lot of loopholes in this program. We are all hoping for good things and that the lenders will realize that standardization could be a good thing.

Oh, yesterday I heard that Fannie Mae and Freddie Mac WILL be participating in HAFA. If so, at least most short sales with just one lien (50%) will be eligible.