Thursday, September 13, 2012

New Lender Program "Customer Relief"

To be prepared is half the victory.
"Miguel Cervantes"
 
I spoke with a Wells Fargo Representative today to get clear on a program that was rolled out 2 months ago. I get a sense the lenders are trying to work out the details to be more accurate, effective and efficient. It is called the "Customer Relief program". Through this program all net proceeds will go to the first lien holder and the second will be wiped out with a zero balance. If homeowners are qualified for this program through the first lien holder then the second from what I am told has to participate. (We shall see). In addition; if the second does get wiped out it still falls within the debt forgiveness however; they will still get a 1099. If the BPO comes back higher than the unpaid balance then the homeowner will be declined for the Customer Relief program and will move into traditional short sale status. The lenders that are participating in this are the following:


- Wells Fargo

- GMAC

- Bank of America

- Chase

- Citi Group

Homeowners who WILL NOT qualify are:


1. Fannie Mae loans ( Freddie Mac is okay)

2. Lots

3. Capital Markets

The benefit for the homeowner is if they are 90 days past due on their mortgage they will NOT be asked to provide their bank statements, pay stubs or tax returns. 30 and 60 day lates will still need to provide the standard financial information. It is still unclear exactly what the qualifications are as the lender has only provided who will not be qualified for this but we were told that the value of the home and the offer would not be a determining factor. As we learn more about the program we will provide you with more information.


Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS

At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...

New Lender Program "Customer Relief"

  1. To be prepared is half the victory.
  2. "Miguel Cervantes"
  3.  

I spoke with a Wells Fargo Representative today to get clear on a program that was rolled out 2 months ago. I get a sense the lenders are trying to work out the details to be more accurate, effective and efficient. It is called the "Customer Relief program". Through this program all net proceeds will go to the first lien holder and the second will be wiped out with a zero balance. If homeowners are qualified for this program through the first lien holder then the second from what I am told has to participate. (We shall see). In addition; if the second does get wiped out it still falls within the debt forgiveness however; they will still get a 1099. If the BPO comes back higher than the unpaid balance then the homeowner will be declined for the Customer Relief program and will move into traditional short sale status. The lenders that are participating in this are the following:

- Wells Fargo
- GMAC
- Bank of America
- Chase
- Citi Group

Homeowners who WILL NOT qualify are:

1. Fannie Mae loans ( Freddie Mac is okay)
2. Lots
3. Capital Markets

The benefit for the homeowner is if they are 90 days past due on their mortgage they will NOT be asked to provide their bank statements, pay stubs or tax returns. 30 and 60 day lates will still need to provide the standard financial information. It is still unclear exactly what the qualifications are as the lender has only provided who will not be qualified for this but we were told that the value of the home and the offer would not be a determining factor. As we learn more about the program we will provide you with more information.

Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS

At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...

Wednesday, September 5, 2012

Re Cap of HAFA Guideline Changes

(Quote) “Any Change, even for the better is accompanied by drawbacks and discomforts" Arnold Bennett

I hope you all had a wonderful long weekend. I was able to get away briefly to Sedona, Arizona. It started off quite rough actually with unexpected surprises that left me in a vulnerable state. I realized how my life has been structured with work and things I can control on a daily basis and how much I count on that but the minute I was put in a circumstance where everything had changed which was out of my control; let me tell you, it was touch an go there for a moment. I learned surrender. To let go and allow everything to unfold as it was suppose to and I had an experience that was better than I could have controlled all on my own. That is so true in all aspects of life really whether it is business related or personal related. They are all connected.

In our business we deal with circumstances out of our control all the time especially with short sales. I have seen first hand how these changes can cause alot of frustration and confusion with professionals in our industry however; when I look back over the years all of changes were for the greater good for all parties involved when we work together, surrender, allow and trust.

Below you will find a recap of all of the new changes to the HAFA guidelines. I will be keeping a running list of not only the changes within HAFA but also Fannie Mae, Freddie Mac and all other lender updates and make sure you are all abreast with the most current information so you will be fully armed and ready to set proper expectations with your clients.


Short Sale Guidelines
HAFA Qualifications for Incentive:

1. Must be owner or tenant occupied

2. 3k seller/tenant relocation assistance

3. Payment to 2nd lien holder is 8% or 8500k

4. If Fannie/Freddie backed loan payoff to 2nd lien is 6000k

5. Property can be vacant or tenant occupied up to 12 months before the Short Sale Agreement but seller must be able to prove it was their primary residence and they have not purchased another home in the last 12 months.

6. Mortgage must be originated on or before Jan. 1st 2009 (for 1st lien)

7. Balance of Mortgage has to be under 729,750 for 1 unit properties. Higher balances are available for 2-4 unit properties.

8. Program is extended through Dec. 31, 2013. Contract must be written on or before this date and must close escrow before Sept. 30, 2014.

9. Military- Any active military members who have been forced to deploy or relocate for service qualify as owner occupants if it was their primary residence.


Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS

At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...