Shortsalenurse's HAFA Blog

February 4, 2011

HAMP / HAFA Failure? Do Law Makers Know the whole Story? Foreclosure Change in 2011

There is so much negative in the media about HAMP / HAFA , Short Sales, Foreclosures and almost everything else to do with Real Estate even the seasoned optimist can be stressed.   That is what I thought when I went to off to bed last night and decided to do a little professional reading.   Here are just a few of the quotes from something I figured I needed to be aware of.  Let’s just stick to three quotes.

1.The Federal Reserve estimates there will be two and one-quarter million foreclosures this year, and about two million more in 2012. The Center for Responsible Lending released a foreclosure forecast estimating an additional 9 million foreclosures between 2009 and 2012. Regardless of the discrepancy between these estimates, the enormity of the continuing tragedy is clear.

2.Voluntary. HAMP is a voluntary program. While there is incentives for lenders and servicers to participate it is completely on a voluntary basis. The Treasury does not have the ability to pressure servicers to actually making modifications.
3. A primary reason for the poor performance of the federal HAMP program according to the December report of the Congressional Oversight Panel (COP) is that mortgage servicers often profit from foreclosure proceedings and have little incentive to participate in the program. According to COP, this is true even if the lender and borrower would have benefited financially from a modification that reduced the mortgage principal and kept the borrower in the home.

OK, now for the source.   A few of the combined task forces (committees)  for the California Assembly wrote a research paper,  vetting this information for law makers.  (Click here to see the Full Document)

The paper is masterfully written.  If someone tried to magically download,  all I know about the Real Estate Market, all the current important facts, they are right in this research (position) paper.  (Were they in my dreams?)

I was,  heck I still am,  very excited to know,  California Law Makers have no excuse to say they don’t know or can’t understand the complexity of housing in our State,  or for the Nation for that matter.  They all have access to the information.   Now, even the public has access to this best of  information.

Could it be a game changer,  the Banks know the Law Makers know, that we the public know, that everyone knows, we all know, but will things change?  Will law makers take the bull by the horns?  They say there is power in knowledge.   If you want the real facts and you have some time this is a great read.  You can see the same things the lawmakers are looking at.  We the taxpayers paid for this and frankly I think gathering together all this information  in  a single easily accessed document was money well spent.   Click on the link above or send a friend the url address below, the power of the facts is at your fingertips, how will you use it?

George Kenner Broker Associate Keller Williams Realty Ca. Lic. 01229951 619-723-5714

All Marketing done with the assistance of Kalabash Marketing

P.S. This is a top secret Message for Mrs. Kalabash, don’t tell anyone!



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