Shortsalenurse's HAFA Blog

November 28, 2010

Filing a HAFA Compliant & Compliance Agent Update

I have not forgotten about this topic.  I have been in discussion with the Policy Director at the Treasury Department, NAR and CAR on this issue.   It would be wrong to rush this story to press.    I went to them with a complaint and it only got more complex after the discussion.  It’s the Holidays and I want to give everyone a fair opportunity to respond, before I get very public with the grounds of the complaint.    And for those of you who have written to me asking how I got http://www.HAFA.us as a web address and how I knew it would become a Federal Program,  Well the truth is that I read the Supplemental Directive the day it was released.   That weekend I was reading a Wayne Dyer Ph.D. book and the thought shot into my mind.    Are any of the HAFA extensions available.  http://www.hafa.us was available , there was no special magic beyond that.

 

I promise you that in the next few days there will be some more news, I am not taking the holidays off.  HAFA short sales are on a time frame of 120 days, my clients want to sell their homes if it is at all possible.

 

George Kenner  Broker Associate

619-723-5714

A Fresh Start, HAFA is it expanding? We think so!

HAFA Short Sales: A Much Needed “Fresh Start” Program For Troubled Borrowers

by Ray Mathoda, Founder and CEO AssetPlanUSA

A recently implemented foreclosure alternatives program created by federal officials is reflective of what many real estate professionals know already: for those experiencing significant loss of household income, financial stability and a job are more important than short term retention of home ownership.

The Home Affordable Foreclosure Alternatives – or HAFA program – designed by the Treasury Department and implemented by Fannie Mae, Freddie Mac, and loan servicers representing more than 90 percent of all loans outstanding offers short sale and deed-in-lieu opportunities to millions of distressed homeowners who are struggling to make their mortgage payments due to labor market issues.

Short sales are the primary foreclosure alternative offered under the HAFA program. With its mandatory implementation in the non-GSE market starting April 5, 2010 and its adoption by both Fannie Mae and Freddie Mac on August 1st, 2010, HAFA becomes the only standardized nationwide short sale program offered by multiple loan servicers with mandated debt forgiveness by all lien holders and $3000 in relocation support to help families move to affordable housing and regain their financial footing.

Until now, debt forgiveness for qualifying families has been a critical missing ingredient in the short sale industry – affecting homeowners as well as the real estate professionals supporting them during their time of need. Loan servicers – who represent the interests of loan investors (not consumers) – have been reluctant to promise debt forgiveness when approving short sale transactions due to fear of potential lawsuits from loan investors aiming to maximize their collections on bad debt.

Now, the HAFA program has set a clear and much needed market standard – for qualifying families with unaffordable mortgages on their primary residence – debt forgiveness should be the norm. Finally, we can offer distressed borrowers a respectful exit and fresh start outside the foreclosure process.

This information is presented with the permission of AssetPlanUSA. It is not an endorsement for ShortSaleNurse. com or http://www.HAFA.US.    Because there is a large number of Realtors that visit this blog, it is important that they also see what is taking place with HAFA.  Get ready for an announcement shortly that the Arizona Association of Realtors is also going to endorse AssetPlanUSA  HAFA training.   Right now this is just a rumor from a fellow Realtor, but they are generally right on leading edge of HAFA news. HAFA makes sence and everyone knows it!

All marketing done with the Assistance of Kalabash Marketing

Goodnight Mrs. Kalabash where ever you are!

George Kenner Broker Associate Lic. #01229951

619-723-5714

November 10, 2010

What is & How do I use a Qualified Written Request?

Title 6 of RESPA (The Real Estate and Settlement Practices Act) details some rules for Loan Servicers and a Qualified Written Request (sample letter at the HUD LINK)  is one of those rules, or tools, of  Consumer Protection.  I believe it is worth bringing this rule to the attention of  as many people as possible,  who are in the process of foreclosure, and are  looking  for methods to defend themselves.  After all, how does someone who is unemployed go get an attorney to help him?   The attorney working for free will just drive the attorney broke and then two homes are at risk instead of one.  But never the less,  the best way to go at a problem with a lender is with an attorney who understands each one of the laws that govern real estate in the jurisdiction were you live.

Also after the Qualified Written Request is taken you may have another step, this is called a” private right of action” if you can prove you have been damaged.  This is also detailed in Title 6 of RESPA.

One of my clients recently filed one of these  QWR’s with their lender and at the same time routed it to regulators pointing to what they believed to be violations of  rules, codes and Laws that govern mortgage servicing.

More and more frequently I hear from my clients that they are frustrated that Regulators have not done anything,  to the Banks who seem to be ignoring the rules of loan servicing and the HAMP / HAFA short sale protocols.   They believe that the Banks by denying them equal application to these government programs,  are discriminating against or harassing  them.

My advise it to keep calling City Hall.  I like to  compare mortage loan servicing to a dangerous intersection that does not have a stop sign and there is accident upon accident, on a weekly basis.   We have all seen this before, the squeaky wheel get the attention so squeak  if this is important to you.  Tell your Congressman and your Senator to keep the pressure up.  If someone needs to go to jail so be it.

The California Association of Realtors STRONGLY Advises everyone consult a Certified Tax Professional and an Attorney before committing to any short Sale.  Every situation is different and should be reviewed by professionals with the proper credentials.

George Kenner Broker, Associate Keller Williams Realty, Lic. #10229951

Good Night Mrs. Kalabash where ever you are.

619-723-5714

 

November 7, 2010

Honey the Cops are on your Tail, your going to HAFA pull this Short Sale OVER

And the driver’s wife says to him:  “Chase your goin HAFA pull over, the Cops are on your tail”!   For some time our Country has tried to  come to terms with the “Foreclosure Crisis”.  We funded TARP which rolled into,  and controls HAMP, and thus HAFA.   And according to the Wall Street Journal on Saturday November 6, 2010 the  Special Inspector General of TARP, Mr. Neil Barofsky is investigating and testifying on the issue.  Some of his quotes in the article are just scandalous at least from my view.   A quick web search of Mr. Barofsky (read this link) reveals some interesting points.   He is a prior U.S. Attorney.   Can anyone hear the echos of Federal Agents wandering the offices of the Loan Servicer’s (Banks).   That is sound I heard when I finished reading the article.

Then factor in that Congressman Darrell Issa is now in a position to advance Congressional Investigations.  Also,  in the two Counties where he has constituents the housing crisis is massive.   Those Counties  were  featured in my blog entry which makes the problem visual  ” how long a line” represents Counties that are  in his geographic district.  Of course he has a real grasp of the situation, he has been dealing with it for a few years now.

Just on Friday I met with a client who in Mid September (this year) got a letter about making his first loan modification payment,  then in Mid October he was told he did not qualify for the loan modification, just a little confusing?   Then in the beginning of November he was foreclosed on.  Now he is being summonsed to Court for eviction proceedings.   The lender went right past the Fannie Mae Mandate to offer him a HAFA short sale.   This,  in my opinion is just plain wrong.  The public has to be able to rely upon the rules that they read in HAMP and HAFA, and might I add that the banks agreed to.

I am going to leave this blog entry with a quote from the article and it reads ” Mr Barofsky says the oversight is toothless,  noting that no servicers have been fined for bungled paperwork or improper foreclosures.”    Something tells me that this prior U.S. Attorney is going to make a call to the FBI and he is going to investigate this until he gets answers.    Honey, you HAFA pull over the cops are on your tail, can’t you see the red lights, Chase?

Here is a  little advise once you pull over tell, the truth you don’t want to have to deal with both speeding and lying.  18 (USC) 1001 can get you a nice vacation at the slide bar motel.

George Kenner, Broker Associate   Keller Williams Realty http://www.HAFA.us

Goodnight Mrs. Kalabash where ever you are.

619-723-5714  ca. Lic. #01229951

November 3, 2010

Lets do the Math, its a very long line… can HAFA make it shorter?

Sometimes simple math can make a complex problem visual.  If  I were to ask how big a box would you need to put a  million one dollar bills in, what would you respond?  As big as say, 3 feet cubed?   Most of us have never seen a million one dollar bills all at the same time,  so to estimate it would be hard , correct?

So to visualize how long a single  file line would be that contained all of the people in San Diego and Riverside County  who are in the formal foreclosure process would be hard, but not impossible?   First we would have to know the number of Notices of Default in San Diego and Riverside County.  To get that number I will go to http://www.ForeclosureRadar.com a web site Realtors and other industry professionals use to track the foreclosure process.

It turns out that the number in San Diego and Riverside Counties is, 46 307 properties.  Now lets estimate that the average number of people living in the home is 3, so lets multiply by three now that equals 138,921 people.

Because when people stand in line they need some social space , lets allow 2 feet per person, one foot to stand in and 6 inches front and back.   So to archive this simple math lets multiply the total number by two,  this give as a grand total of the length of the line in feet. 277,842 total feet.

Some people just love math, and know the number of feet in a mile is 5280, so let’s divide the total number of feet by 5280.  That will give us the length of the line.   This equals 52.62 and that is miles long, yes 52 MILES LONG.

If your familiar with San Diego County that is a single file line of people from about the Mexican Border at San Ysidro to Oceanside .  That is one heck of a line.    Think of the “Social Impact” of foreclosures on all of these homes and the homeless people it would create.   NOW ,you can see the reason for HAFA and forcing or at least strongly encouraging  the the banks to see the light. This is not a problem on Wall Street this is a problem on Interstate 5 in Southern California.

The Data for this caculation included  Notices of Default, Trustee Sales and Properties still in possession of the Banks in San Diego and Riverside Counties . www.ForeclosureRadar.com was the source of the Data and was gathered on Nov. 3 , 2010.

To add to the scope of the potentional problem, I  will also add that many of the people who I have aided with Short Sales are not even in the formal foreclosure process.  Including these people would only make the line longer. Maybe on another day I will divide this number into the number of Police officers on the beat and show you how impossible it would be to evict all of these people.  Maybe that will explain why we have cash for keys.

George Kenner, Broker Associate Keller Williams Realty, Lic. 01229951

If you want to talk Short Sales Call me at 619-723-5714

Good Night Mrs. Kalabash where ever you are!

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