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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)
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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