Friday, December 11, 2009
The new rules announced by the U.S. Treasury Department will help homeowners through the short-sale process. The Treasury Department announced rules and forms on November 30 for its new Home Affordable Foreclosure Alternatives program.
The program is part of the Home Affordable Modification Program and offer incentives in connection with a small auction or a deed-in-lieu of foreclosure to avoid foreclosure on a loan eligible for modification under HAMP.
The foreclosure alternatives program is outlined in 43 pages of rules and forms designed to shorten and simplify use of short sales and deeds-in-lieu of foreclosure and apply to mortgages not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their personal editions in coming weeks.
The foreclosure alternative program:
Balance the reasonable change program by giving an alternative for borrowers the homeowners who is HAMP-eligible but incapable to maintain their homes.
Uses borrower economical and hardship information previously collected in link with consideration of a loan modification.
Allow borrowers to accept preapproved short-sale terms before listing the property, including the minimum acceptable net progress.
Bans servicers from involving a decrease in the real estate charge decided upon in the listing agreement up to 6%.
Needs borrowers to be freed from future liability for the first mortgage debt no cash contribution, promissory note or deficiency judgment is allowed.
Use regular procedures, papers and time frames/limits.
Gives financial incentives: $1,500 for borrower transfer help, $1,000 for servicers to managerial and dealing costs and up to $1,000 for investors for allowing a total of up to $3,000 in short-sale proceeds to be distributed to secondary lien owners on a one-for-three matching basis.
The program will run April 5, 2010, through Dec. 31, 2012, but servicers may apply it before April 5 if they meet the conditions.
The program is part of the Home Affordable Modification Program and offer incentives in connection with a small auction or a deed-in-lieu of foreclosure to avoid foreclosure on a loan eligible for modification under HAMP.
The foreclosure alternatives program is outlined in 43 pages of rules and forms designed to shorten and simplify use of short sales and deeds-in-lieu of foreclosure and apply to mortgages not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their personal editions in coming weeks.
The foreclosure alternative program:
Balance the reasonable change program by giving an alternative for borrowers the homeowners who is HAMP-eligible but incapable to maintain their homes.
Uses borrower economical and hardship information previously collected in link with consideration of a loan modification.
Allow borrowers to accept preapproved short-sale terms before listing the property, including the minimum acceptable net progress.
Bans servicers from involving a decrease in the real estate charge decided upon in the listing agreement up to 6%.
Needs borrowers to be freed from future liability for the first mortgage debt no cash contribution, promissory note or deficiency judgment is allowed.
Use regular procedures, papers and time frames/limits.
Gives financial incentives: $1,500 for borrower transfer help, $1,000 for servicers to managerial and dealing costs and up to $1,000 for investors for allowing a total of up to $3,000 in short-sale proceeds to be distributed to secondary lien owners on a one-for-three matching basis.
The program will run April 5, 2010, through Dec. 31, 2012, but servicers may apply it before April 5 if they meet the conditions.
Labels: Foreclosure Alternatives Program rules assist anxious house holders
posted by Avoid foreclosure, We buy houses, Stop foreclosure
@ 12:57 AM
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