Replies to This Discussion

Permalink Reply by Margaret C. Taylor on March 22, 2010 at 1:22pm

I don't believe the Home Owner is forced to pay anything. One of the Eligibility qualifications for HAFA is that the Home Owner's monthly payment (P&I) exceeds 31% of the Home Owners monthly gross income. Please correct me if you are talking about something different.

Also after the Short Sale Agreement is signed the Home Owner has 120 days to sell, with extensions up to one year, at Lender's choice. Margaret C.

Ben Benita said:

Homeowner payments - -I know owners MUST first "qualify" for the HAMP program before being eligible for HAFA. I was on the big conference call for this about a month ago and, as part of HAFA, the home MUST be listed for AT LEAST 120 days, during which time the owner MUST MAKE SOME TYPE OF MORTAAGE PAYMENT, NOT TO EXCED 31% OF THE SELLER'S GROSS MONTHLY INCOME......so, around here (Washington DC area, most mortgage payments are $2k - $4k....doing simple math, if an owner is FORCED to pay even $2k per month for 120 days (4 months) that is $8000!!!!.....

HUH??? How could any agent, OR ANYONE DOING SHORT SALES, actually recommend this to a client as being a good idea? We have done short sales where owners have had 6 to 12 months of NO PAYMENTS.....I have a neighbor in my community, he is roughly $300k upside down and tried a loan mod. but was not eligible, just stop making payments. They bought a new car and have taken 2 GREAT family vacations during the past 7 to 9 months (believe they stopped paying in July/Aug. of 2009). They have a friend in the community that will be renting them his house once their home goes to foreclosure.....
My 2 cents....why not???? Credit is WAY WAY WAY over-rated and VERY EASILY REPAIRED!!!! Though I know agents are not "allowed" to tell an owner to quit paying, if you are upside down and using retirement or savings to pay your mortgage, you might as well just make your check out to FICO or Experian as the only beneift you are getting is that it will maintain your credit. I tell homeowners you are better off sending the cash to a charity if you have it to burn, AT LEAST THEY WILL THANK YOU FOR IT!!!!


Steele V. Propp said:

Could you explain how HAFA makes sellers send in cash? I don't remember reading about that but don't claim expertise on this program. Just the basics.

Ben Benita said:

HAFA -- that is a gov. program that Sellers must first qualify for. I do not like it b/c it requires Sellers to send in cash....my opinion, at least in this area, it makes NO financial sense (owners lose more money through this program versus not sending in any more money)

Permalink Reply by Ben Benita on March 23, 2010 at 8:00am

Regarding HAFA -- I am 99% certain the owner's DO have to pay monies during the short sale process, again, UP TO 31% of their gross income (their ARE a few exceptions, but, if they CAN pay, they will be required to do so).

Permalink Reply by Katerina Gasset on April 2, 2010 at 8:21pm

The HAFA program won't even work with people who have seconds and thirds unless those seconds and thirds agree to 3K to split between them, not likely. That will really muddy the waters. The other situation is that the seller has to take care of all their liens, that means HOA and taxes. Here in Florida, that won't be happening anytime soon;) Not only that, here in Florida people live in their homes for 2 to 3 years without every making a mortgage payment. Why would they start making payments now? Not likely. They will take their chances and right when they get that foreclosure auction date in their hands is when they will say, OK, let's do the short sale, thus buying themselves a few more months.

Permalink Reply by Katerina Gasset on April 2, 2010 at 8:22pm

I really don't like the idea of designated agents. Sounds like some body trying to charge money to agents again and again. We work for our sellers not the banks. I like it that way.

Permalink Reply by Susan Kahler on April 6, 2010 at 11:28am

The latest Supplemental Directive re: HAMP, 43 pages but the last 8 - 10 are forms

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

There is mention of the homeowner setting up and making temporary modification payments. I think at this point, they're taking what they can get from the homeowners.

If they can no longer afford it, they then need to look at alternatives, including short sale, deed in lieu, etc.

Permalink Reply by Steele V. Propp on April 6, 2010 at 11:46am

Just a note for those who have not seen the HAFA updates from Friday, March 26th. Secondary lien payoffs were doubled from $3,000 to $6,000 as were seller's relocation benefits ($1,500 to $3,000). You may want to get the latest updates direct from the Treasury.

Katerina Gasset said:

The HAFA program won't even work with people who have seconds and thirds unless those seconds and thirds agree to 3K to split between them, not likely. That will really muddy the waters. The other situation is that the seller has to take care of all their liens, that means HOA and taxes. Here in Florida, that won't be happening anytime soon;) Not only that, here in Florida people live in their homes for 2 to 3 years without every making a mortgage payment. Why would they start making payments now? Not likely. They will take their chances and right when they get that foreclosure auction date in their hands is when they will say, OK, let's do the short sale, thus buying themselves a few more months.

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