To find out if you are HAFA eligible, call Jason Hector at 818-626-6469 or you can check to see if your lender is on the list of
MHA Participating Loan Servicers. One of the greatest successes this years has been the ability to get homeowners into the HAFA program despite them being denied by their lenders. Agents who are authorized third parties as well as homeowners are able to open an escalation with the HAMP Solution Center if they are being reviewed for the Making Home Affordable program or doing a HAFA short sale. This is a big help when there is a trustee sale in the near future and also to put pressure on servicers who do not follow the program guidelines for the Making Home Affordable program which includes the HAFA Short Sale Program. I have written a page on how to
File a Complaint when you are not happy with the lender or servicer or just want that added level of protection when working with your servicer. It is not at all uncommon for the lenders to not be following the guidelines so the HAMP Solution Center has been a great resource that I am using now for several clients and they are wonderful to work with.
It is very important for homeowners to contact a real estate agent at the point they receive the HAFA solicitation if they wish to participate in the program since they will be required to "enlist the services of a real estate professional" like myself. This solicitation letter typicaly comes after being denied for a loan modification. Homeowners can request HAFA consideration using the RMA Form if they wish to proceed with a HAFA short sale.
Many who are at risk of losing their homes through foreclosure may be able to receive help through the Home Affordable Foreclosure Alternatives Program established by the US Treasury Department. HAFA is primarily designed for homeowners with a documented hardship who are unable to stay in their home even with a loan modification under the Home Affordable Modification Program (HAMP) or other loan modification program. Under HAFA, homeowners may be able to avoid a foreclosure by selling the home as a “short sale” (where the value of the home is less than the remaining amount of the first mortgage). Click Here for More HAFA Program Information.
The US Treasury sponsored HAFA program has been an amazing help to homeowners with one of the main benefits being the program guideline which does not allow the lender to complete a foreclosure sale while under review for the HAFA program. The short sale option is typically used after homeowner have tried to get a loan modification and were unsuccessful and if they haven't been able to qualify for any type of refinance programs including the HARP Refinancing program for Fannie Mae and Freddie Mac owned loans.
Clients definately prefer to be under the HAFA short sale program if eligible, however the lenders are sometimes reluctant to allow them. Some other objections I am hearing from lenders for not allowing homeowners into the HAFA program are the following:
- If the loan has a trustee sale which is 60 days or less away, Bank of America has a policy that will not allow you into the HAFA program.
- If a homeowner fails to return the HAFA solicitation document within 14 days. This document is typically sent via Fed Ex or UPS after a homeowner is denied for a Making Home Affordable Loan Modification. Failing to return this important document is grounds for them to decline you for the program so if you received this solicitation, call me immediately so I can help you decide if a short sale is right for you.
- Failing to return the Alternative Request for Short Sale Form which the lender sends to you once you have received an offer on the property. This document needs to be completed by the homeowner with the assistance of the real estate agent. It is also usually sent overnight and must be completed and returned immediately since there is only 14 days to return it to the lender according to the MHA guidelines.
For those who are not qualified for the HAFA program, for example with JP Morgan Chase; If I am able to get what the bank considers a reasobable offer, banks are typically ready to postpone these sale dates if there is an offer which they feel is within the range of fair market value. Of course there are no guarantees but banks typically prefer not to have to get involved in the sale of real estate unless they have to. Also, second lienholders who are facing being wiped out by foreclosure are sometimes willing to take much less than what's owed rather than getting nothing. In order to determine the fair market value, the lender will order either a drive by or interior broker price opinion or full appraisal. Homeowners should not delay because this determination of market value must be completed for the bank to determine if they are willing to postpone the trustee sale.
If you are having mortgage difficulties, you can take action to resolve things and move on by agreeing to sell the home and ask the lender to settle the debt for less than what is owed. This allows you to have the account show "Paid in Full for less than the full balance". This is much less damaging than a foreclosure or repossession by the bank. The fact that you have found my website shows that you are seeking to get information. Studies show that the most homeowners first contact a real estate professional, like myself to assist them with the property.
Homeowners can have a tremendous burden lifted by allowing myself to guide you, submit the documents to the lender, market and find a qualified buyer, manage the property until the close of escrow. In a short sale, there is no cost to the homeowner since the lender must agree to pay the real estate brokers commission. I feel rewarded when I know that I have transfered some of the burden so that homeowners can move on with their life while we work through the completion of the short sale. I have completed successful Short Sales thoughout the San Fernando Valley including
Chatsworth,
Encino, Granada Hills,
Lake Balboa, North Hills,
Northridge,
Mission Hills, Pacoima,
West Hills, and Woodland Hills. As a member of the National Association of Realtors, I pride myself on following the
2011 Code of Ethics. Excellent service, professionalism, hard work, and honesty are some of the kind feedback I have heard from past clients. I have great referrences available upon request.
Please join me on Twitter, You Tube and Facebook:
Jason Hector doing business as Action Investments is not associated with the government and our service is not approved by the government or your lender and even if you accept this offer and use our service, your lender may not agree to change your loan.
Great news for struggling homeowners who have had foreclosures filed between Jan 1, 2009 and December 31, 2010!!!
[November 1, 2011 from the Office of the Comptroller of the Currency (banks regulator)] the 14
mortgage servicers covered by the enforcement actions began mailing letters to eligible borrowers that explain how to request a review of their case if they believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings related to their primary residence between January 1, 2009 and December 31, 2010. Borrowers may also visit
www.IndependentForeclosureReview.com for more information about the review and claim process. Assistance with requesting a review and answers to questions about the process are available at
1-888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET) and Saturday from 8 a.m. to 5 p.m. (ET).
Consent orders were issued on April 13, 2011 and taken out against the following list of banks:
- Bank of America
- Citibank
- HSBC
- JP Morgan Chase
- MetLife Bank
- PNC
- U.S. Bank
- Wells Fargo
- Aurora Bank
- EverBank
- One West Bank
- Sovereign Bank
Depending on which bank services your loan, a firm will be assigned to handle these reviews. Some of the firms include Clayton Services LLP, Ernst & Young LLP, Deloitte & Touch LLP and Promontory Financial Group LLC.
Since this a brand new program, please let me know if anyone received this mailing from their lender? Has anyone requested a review yet? Please note that requests for review must be received by April 30, 2012.
Independent Foreclosure Review
Phone 1-888-952-9105
Monday through Friday from 8 a.m. to 10 p.m. (ET)
Saturday from 8 a.m. to 5 p.m. (ET).
