Greg DeCristofaro

Can HAFA help me with a short sale in Oxford, Alabama?

 

In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP).

 

How can HAFA help with my short sale in Oxford, AL? HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure.   HAFA offers the following:

* Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.

* Uses borrower financial and hardship information already collected in connection with consideration of a loan modification. * Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

* Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).

* Uses standard processes, documents, and timeframes/deadlines.

* Provides the following financial incentives:

o $3,000 for borrower relocation assistance;
o $1,500 for servicers to cover administrative and processing costs;
o Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.

* Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

(The above info was provided by Realtor.org)

 

For a Free Brochure with a full explaination of how HAFA can help you with a short sale in Oxford, AL or anywhere in Alabama, visit our website and request the brochure.

 

 

How Does a Short Sale Effect My Credit Score?

The question is not as easy to answer as we would all like to think. Credit scores are determined in a variety of ways, and there is no way a blog post is going to get you 100% up to date on it. There are a few things you do need to know first...

There are 3 credit bureaus that calculate your credit score. In Alabama, you are entitled to 1 free report from all 3 of them every year. This is so you can check your report for accuracy.

The 3 agencies that track your credit for the lending institutions are: Experian, Transunion and Equifax. The 3 Credit Bureaus run a website called Annualcreditreport.com You can order your free reports from this site.

OK, now onto the effect a Short Sale has on your credit score. According to Fair Isaac, the short sale will damage your credit score just as much as a foreclosure (200-300 points, depending on other credit factors). The good news though, is a person who is foreclosed on will wait no more than 2 years to be offered a reasonable interest rate to buy a new home, where a foreclosure victim can count on waiting 3-5 years before buying another home.

The effect of a short sale on your credit score in Alabama is indeed severe, but not as bad as the effect of a foreclosure on your credit score.

In other words... if you are trying to decide between a short sale or a foreclosure, don't be so quick to just say "the effect of a short sale on my credit score is the same as the effect of a foreclosure". There are other differences, including when you will be eligible for another home, and possibly even more important... if you are foreclosed on, the bank can (and probably will) come after you for the amount of money they lose (the difference between what you owe and what they sold the property for).

If you would like to learn more about

Fannie Mae and the US Army announced a plan yesterday to help service men and women (and their immediate families) in the event of an injury of death.

The plan would allow the families a 6 month forbearance of either reduced payments or no payments so the family can concentrate on the more important issue.

A family may qualify for the program only if they have a loan provided through Fannie Mae. The goal of this new program is to help reduce the number of foreclosures for military families dealing with injury or death.

It was great to wake up this morning and see something positive being done for our Service Men and Women! They have a very difficult and dangerous job, and it's nice to see that someone is thinking of them.

If you are a service man or woman, you can find more information on this new foreclosure program by calling toll free, 877-MIL-4566

Advantages of a Short Sale in Anniston, AL

As the recent problems with the US Economy continue, we are hearing these words more and more more often.. "Short Sale" ... What is it? Well, to put it simply, a Short Sale is a bank accepting less than it is owed as full payment for a home. (If you ever tried to trade in a car with high miles, you may have been "upside down" meaning you owe more money than the dealer is going to give you.. Well, short sales are the same thing, except instead of your car, you're "upside down" on your home).

A short sale will have a seriously negative effect on your credit report... almost as much of an effect as a foreclosre would. Because of this, a lot of people feel there is no real advantage to a short sale because either way, you are leaving the closing with no money, and you are taking a major hit on your credit report

This is one way to look at it, but not the right way... There are several advantages of a short sale.

One advantage of a short sale is that if it's negotiated properly, you can get the bank to forgive the remainder that you may owe on the house. This is not the case if your home is foreclosed on. After your foreclosure, the bank will sell the house for whatever it can and then send you a bill for the difference!

Another advantage of a short sale is that with the bank's permission, you can sell the home for a much more attractive price, making the sale faster, which will allow you to breathe easier a lot faster. Whether the house sells for top market value or lower market value, you are going to receive no money at the end of the short sale. Because you are leaving with no money, it should be easier for you to price the house at a more competitive rate than you would if you were trying to profit from the sale. The lower you price the house, the faster you should be able to sell it.

One final advantage consider when trying to decide if the advantages of a short sale are worthwhile for you... There are programs that will pay you up to $3000 to help you get back "on your feet". To find out more about these programs, please call me at 256-241-1500, email me at gregde@kw.com or click on the "Call Me Now" link below.

FIND OUT MORE ABOUT SHORT SALES IN ANNISTON, AL HERE

As a Realtor, I am often asked the difference between a Short Sale and a Foreclosure. After I explain the difference, I am usually met with the same response... "so, why would I care? Both hurt my credit, and I walk away from my home with NOTHING either way."

The answer is easy... If your Short Sale is negotiated properly, you can be forgiven of any balances still due. For example, if you owe $200,000 for a house and the bank forecloses and sells the house for $150,000... they can come after you for the $50,000 difference. A properly negotiated short sale, however, will usually forgive you the rest of the debt. In order to be sure your Short Sale is negotiated properly, it's always best to use a licensed Realtor and a Short Sale Consulting company.