HAFA Program falls woefully short …

THE FOLLOWING ARTICLE APPEARED DEC. 18 IN THE P-E

By Brian Bean & Tim Hardin

Banks completed just 342 short sales through the Home Affordable Foreclosure Alternatives program in the first six months, according to a report from the Special Inspector General for the Troubled Asset Relief Program.

HAFA launched April 5 and was designed for homeowners to short sale a home and avert foreclosure if they couldn’t complete or qualify for a loan modification through the government’s Home Affordable Modification Program. Through Sept. 30, the Treasury Dept. paid out $1.6 million in TARP funds to banks, investors, servicers and homeowners on 342 short sales or deeds-in-lieu of foreclosure, according to Treasury data in the SIGTARP report.

Banks and servicers dispute the results but thus far have not produced their own HAFA numbers. Servicers canceled 699,924 HAMP trial modifications as of September and another 29,190 permanent modifications, according to an October report from HousingWire.

HAFA guidelines provide $1,500 to a servicer for a completed HAFA short sale, and the lender cannot pursue the borrower for the remaining loan balance. The investor also receives $1 for every $3 it allows to compensate a junior lien holder, up to $2,000. Junior lien holders can receive a maximum of $3,000 each. The borrower receives $3,000 for “relocation.”

In the Inland Empire, junior lien holders often derail HAFA transactions because the program severely limits their compensation while requiring lien holders to waive the deficiency balance. The government program, despite what many believe, is not mandatory.

For information about the realities of HAFA and HAMP, call 951-778-9700 or email PE@DreamBigRealEstate.com.

* * *

MLS Home Sale Data

Here are monthly sales statistics for Riverside-San Bernardino single-family residences. The data is reported by CRMLS, the regional database Realtors use to market properties for sale and lease and to track sales activity. Sales data, which is updated by individual brokers, can change.

SOLD

November 2010

Riverside County: 2,463

San Bernardino County: 1,466

October 2010

Riverside County: 2,554

San Bernardino County: 1,560

November 2009

Riverside County: 2,823

San Bernardino County: 1,628

IN ESCROW

Dec. 15

Riverside County: 7,443

San Bernardino County: 4,175

ACTIVE LISTING

Dec. 15

Riverside County: 12,730

San Bernardino County: 7,448

(Brian Bean is a real estate broker and ambassador for Helping A Million Homeowners, a nationwide organization that is committed to helping alleviate the financial stress that so many homeowners face today. He can be reached directly at Brian@DreamBigRealEstate.com.)

Brian Bean
Real Estate Professional
www.DreamBigRealEstate.com
www.IEShortSalePros.com
www.HelpingAMillionHomeowners.com

Short Sale Genius Elite

I’ve been specially trained to negotiate short sales with an emphasis on Deficiency Waivers


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If one advances confidently in the direction of his dreams,
and endeavors to live the life which he has imagined,
he will meet with a success unexpected in common hours.
 

 

Henry David Thoreau

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