Quickening the Short Sale Process with Standardization
January 27, 2010 by Victoria Stankard · Leave a Comment
There has been much caviling in the past few years from homeowners and realtors about inconsistencies and the time it takes to process a short sale.
Lack of Short Sale Standardization
In response to the situation, the National Association of Realtors® (NAR) created a task force to address the the lack of standardization from one lender and servicer to another. The NAR recommended a more standardized approach to the short sale process with nationally uniform documents, specific time frames and also provides financial incentives for key players, including:
- Homeowners who successfully complete a short sale under the program receive $1,500 to augment relocation costs
- Investors get $1,000
- Mortgage servicers can receive $1,000 per case
- Second-lien holders receive up to $3,000 from the sale proceeds
Home Affordable Foreclosure Alternatives Program (HAFA)
In November of 2009, 43 pages of guidelines and forms were released by the Department of Treasury for its new Home Affordable Foreclosure Alternatives Program (HAFA), which is part of the Home Affordable Modification Program (HAMP).
HAFA complements HAMP by providing a viable alternative for borrowers (homeowners) who are eligible for HAMP and unable to pay their mortgage. HAFA uses borrower financial and hardship information already collected in connection with consideration for a loan modification.
Lenders and servicers participating in HAMP are required to follow the guidelines issued by HAFA. To find a list of participating lenders and servicers, visit the MakingHomeAffordable.gov website.
HAFA Guidelines
Under HAFA, a borrower or broker has 3 business days to submit an executed purchase offer and all pertinent documents (specified under the program) to the servicer/lender, who then has 10 business days to respond. If said offer meets the net proceeds requirement, the lender/servicer must accept the offer.
The program is currently only available for loans up to $729,750 that are not Fannie Mae or Freddie Mac owned or guaranteed. HAFA doesn’t actually go into effect until April 5, 2010. However, servicers may implement the program before hand if specific requirements are met.
Short Sale Properties/Homes for Sale Charlotte NC
If you’re looking to purchase a short sale in Charlotte, NC, you need an experienced real estate agent who understands the ins-and-outs of the short sale process.
Leigh Brown is a seasoned real estate broker and bargain real estate expert. She will not only help you find the right short sale property in the Charlotte metro area, she will guide you through the short sale buying process every step of the way!
You can reach Leigh by filling out her online contact form or by calling her at (704) 688-5005 or toll free at (866) 440-7136.
Sources:
Realtor.org
Making Home Affordable
TampaBay.com
Leigh Brown, aka The Real Estate Diva, is a native of Concord NC in the Charlotte area. She grew up on a farm at the edge of Cabarrus County, still goes to the same church she grew up in (home of the world famous Mallard Creek Barbecue!), but has become a leader in area real estate through constant learning and continually upgrading technology to better serve buyer and seller clients. Leigh does indeed have a reputation as a barracuda-when it comes to protecting client interests. Her softer side is reserved for her husband and two kids who provide a constant source of joy-and entertainment
