GOLD Team Manassas

GOLD TEAM: New Treasury Foreclosure Avoidance Eligibility Criteria

Copyright (C) 2009 Deanna & Jim's GOLD Team, RE/MAX Olympic Realty

Dateline 11/30/2009. Washington, DC. The US Treasury Department has detailed the basic eligibility criteria for homeowner participation in the new Home Affordable Foreclosure Avoidance streamlined, standardized, short sale program:

Effective April 5, 2010 first mortgage servicers who participate in the Treasury's existing HAMP loan modification program must consider a HAFA short sale before referring a borrower's loan to foreclosure or allowing a pending foreclosure sale to complete. (An internet search with your first loan holder's name and the word HAMP will swiftly reveal whether or not your lender is a HAMP participant. Most major lenders are HAMP participants.)

To be eligible to participate in HAFA and avoid foreclosure the first loan must meet the following conditions:

* The property is the borrowers principal residence

* The mortgage loan is a first lien mortgage originated on or before January 1, 2009

* The mortgage is delinquent or degault is reasonably foreseeable

* The current unpaid principal balance is less than or equal to $729,750

* The borrower's total monthly mortgage payment exceeds 31 % per cent of the borrower's gross income

HAFA includes provisions for:

* Standardized terms to resolve junior liens including 2nd/3rd mortgages or home equity lines of credit

* $1500 cash for keys payment to homeowner at closing

The key to success in any short sale program is working with a properly trained, highly experienced short sale team such as Deanna & Jim's GOLD Team at RE/MAX Olympic. We have closed 350+ Northern Virginia transactions in the last 9 years; we work with 15 major banks; we typically have 5 to 10 short sales in process at any point in time. We can be reached at 703-969-0410.

GOLD Team Highlights New US Treasury Foreclosure Avoidance Guidelines

Copyright (C) 2009 Deanna & Jim's GOLD Team, RE/MAX Olympic Realty

Introduction

Dateline 11/30/09, Washington, DC. The US Treasury's has published new guidelines to assist more homeowners in avoiding foreclosure. Previously many mortgage-payment-challenged homeowners could apply for loan modifications under the existing Home Affordable Modification Program (HAMP) loan modification program.

Unfortunately many homeowners either could not qualify for HAMP trial modifications, did not perform as agreed during their HAMP trial period, or simply did not want to attempt a HAMP loan modification.

Treasury has now put forth the forms, procedures and processes for a new extension to HAMP called Home Affordable Foreclosure Alternatives (HAFA). HAFA provides a streamlined, standardized approach for homeowners to succeed with a short sale. HAFA will empower thousands of participating homeowners to avoid foreclosure! HAFA will only be available to homeowners who choose to work with properly trained real estate agents ( such as the GOLD Team).

Homeowner Advantages

* Homeowners will need to move to another home; their former first mortgage lender will pay them a $1500 relocation incentive. Prior short sales did NOT allow the homeowner to receive any funds at closing.

* Homeowners will be released from all liability for repayment of the mortgage debt from their first mortgage.

* Junior mortgage holders will be paid up to 3%, not to exceed $3,000, of their debt in order to release their claim on the homeowner. If they accept this payment the homeowner will also be released from all liability for their 2nd/3rd mortage debt and/or their home equity line of credit. The existing first mortgage holder will be compensated up to $1000 (by Treasury) in exchange for them allowing the junior lienholders to do this.

* The property will be listed with a licensed real estate professional skilled in short sales (e.g. Deanna & Jim's GOLD Team).

* The price the property is listed for will be approved in advance by the first mortgage lender.

* The first mortgage lender will respond to any buyer offers within 10 days! This is EXTRAORDINARILY faster than prior short sales where buyers might have to wait 4-8 months for a response. This fact alone will significantly increase the available market of buyers willing to participate in HAFA short sales.

* The first lender will receive a Treasury payment of $1000 for accepting the HAFA short sale.

To Learn More

* Call Deanna & Jim's GOLD Team at 703-969-0410

or

* Read the full Teasury HAMP Supplemental Directive 09-09 at https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

(Deanna & Jim's GOLD Team has handled many successful short sales for both buyers and sellers. We have at least half a dozen short sale transactions underway at any point in time. We have handled over 350 Northern Virginia residential real estate transactions in the last 9 years and over 150 bank-owned sales in the last 2 years. We are currently working with 15-20 major banks. We have 3 master's degrees including an MBA.)

Montclair, Dumfries Foreclosures vs Short Sales vs Normal Sales Q1 Through Q3 2009

Copyright (c) 2009 Deanna & Jim's GOLD Team

First Quarter Second Quarter Third Quarter

Listed Sold Listed Sold Listed Sold

Foreclosures* 63 48 89 86 44 48

Short Sales** 64 3 110 32 76 48

Resales*** 96 118 129 73 79 64

ANALYSIS

Lag of Sales: Sold counts reflect properties listed in this or prior periods.

Short Sale Lag: Short sales require significantly longer to close once under contract.

Short Sale Buyer Reluctance: The delay and uncertainty associated with short sales has traditionally caused many buyers and buyers agents to shy away from such listings.

Increasing Percentage of Distressed Closings: In the first quarter short sale closings were about 1/16 the number of bank-owned closings and 3% the number of resales. In the second quarter short sale closings were about 1/3 the bank-owned closings and over 40% the resales. In the third quarter bank-owned and short sale closings were equal at 3/4 the number of resales closings.

New Listing Volume for for all types of property was significantly higher in second quarter than first or third quarter.

BUYER SELLER SUCCESS

The Prince William County home marketplace is powerfully affected by the mortgage crisis. Selling or buying successfully in this market depends critically on your choice of an experience real estate team. Deanna & Jim's GOLD Team has handled over 350 transactions in the last 9 years, including 150+ bank-owned and many, many short sales.

* Foreclosures also known as bank-owned also known as REO

** Short Sales also known as Pre-foreclosure

*** Resakes also known as normal sales also known as straight sales

(Date from MRIS MLS believed accurate.)

Bristow, Gainesville, Haymarket Foreclosures vs Short Sales vs Normal Sales Q1 Through Q3 2009

Copyright (c) 2009 Deanna & Jim's GOLD Team

First Quarter Second Quarter Third Quarter

Listed Sold Listed Sold Listed Sold

Foreclosures* 107 65 111 125 94 113

Short Sales** 175 36 231 68 190 110

Resales*** 388 230 303 219 286 225

ANALYSIS

Lag of Sales: Sold counts reflect properties listed in this or prior periods.

Short Sale Lag: Short sales require significantly longer to close once under contract.

Short Sale Buyer Reluctance: The delay and uncertainty associated with short sales has traditionally caused many buyers and buyers agents to shy away from such listings.

Increasing Percentage of Distressed Closings: In the first quarter short sale closings were about 1/2 the number of bank-owned closings and 1/7 the number of resales. In the second quarter short sale closings were about 1/2 the bank-owned closings and over 1/3 the resales. In the second and third quarters bank-owned closings exceeded resales.

New Listing Volume for foreclosures was roughly flat from first to second quarter and down 25% from second to third quarter. Short sale new listing volume increased 25% from first to second quarter but fell back almost the same amount to third quarter. Resale new listing volume declined steadily from quarter to quarter for resales.

BUYER SELLER SUCCESS

The Prince William County home marketplace is powerfully affected by the mortgage crisis. Selling or buying successfully in this market depends critically on your choice of an experience real estate team. Deanna & Jim's GOLD Team has handled over 350 transactions in the last 9 years, including 150+ bank-owned and many, many short sales.

* Foreclosures also known as bank-owned also known as REO

** Short Sales also known as Pre-foreclosure

*** Resakes also known as normal sales also known as straight sales

(Date from MRIS MLS believed accurate.)

Manassas Foreclosures vs Short Sales vs Normal Sales Q1 Through Q3 2009

Copyright (c) 2009 Deanna & Jim's GOLD Team

First Quarter Second Quarter Third Quarter

Listed Sold Listed Sold Listed Sold

Foreclosures* 285 211 252 350 243 274

Short Sales** 368 50 422 180 320 234

Resales*** 408 552 309 277 293 218

ANALYSIS

Lag of Sales: Sold counts reflect properties listed in this or prior periods.

Short Sale Lag: Short sales require significantly longer to close once under contract.

Short Sale Buyer Reluctance: The delay and uncertainty associated with short sales has traditionally caused many buyers and buyers agents to shy away from such listings.

Increasing Percentage of Distressed Closings: In the first quarter short sale closings were about 1/4 the number of bank-owned closings and 1/11 the number of resales. In the second quarter short sale closings were about 1/2 the bank-owned closings and over 2/3 the resales. In the second and third quarters bank-owned closings exceeded resales. In the third quarter short sale closings exceeded the resales.

New Listing Volume decreased for bank-owned from first to second to third quarters. New short sale listing volume was higher in second quarter than first quarter. New listing volume decreased from second to third quarter for all types of listings.

BUYER SELLER SUCCESS

The Prince William County home marketplace is powerfully affected by the mortgage crisis. Selling or buying successfully in this market depends critically on your choice of an experience real estate team. Deanna & Jim's GOLD Team has handled over 350 transactions in the last 9 years, including 150+ bank-owned and many, many short sales.

* Foreclosures also known as bank-owned also known as REO

** Short Sales also known as Pre-foreclosure

*** Resakes also known as normal sales also known as straight sales

(Date from MRIS MLS believed accurate.)