HAFA Govt Scam, so far, but could get better

Although we have closed 2 HAFA short sales, the program is torture for any anyone who cares about their time, their schedule, their sellers or their buyers. 

Now we have proof see the article below.  There have only been 661 closed HAFA short sales in the country.

My speculation is this...
The govt has been complicit with the FED and the banks... who are the shareholders in the FED.
They new if all these upside down homeowers let their properties go at once real estate prices would get so low even the found could not bail out their insolvent banker friends. 

So they created these loan mod and short sale programs to slow down the supply of real estate hitting the market. 

1. Create big funnel
2. Only let the most persistent and most organized out the other end with a loan mod or short sale. 

We know about 5% of applicants actually got real loan modifications. 
And, we know on average Realtors only close 25% of their short sales. 
Now we know that all those Realtors claiming to be HAFA short sale experts, have probably not even closed a HAFA short sale. 
 

The moral of the story is.  If you are upside down... make sure you work with someone who can prove they have the systems in place to short sale approvals on terms you find acceptable.  There are many so self proclaimed short sale and HAFA experts... just ask them to show you HAFA approvals and closings. 

Don't fall for the government or real estate industry "expert" designations.  Only work with people who document results.

And most importantly have an asset protection plan in place before you begin your loan workout.  You must have a backup plan because you plan A might not work.   


HAMP « HousingWire

The Treasury Department took action in December eliminating some rules it said have held back short sales through the Home Affordable Foreclosure Alternatives program.

HAFA was launched in April 2010 to provide an incentive to servicers and investors for pursuing short sales and deeds-in-lieu of foreclosure. The program was designed for homeowners who fell out of the Treasury's Home Affordable Modification Program and was touted as a new standard for short sales.

But both HAFA and HAMP have struggled. The Treasury has spent only $4.3 million through HAFA, inducing roughly 661 short sales since the program launched, according to the Congressional Oversight Panel, the Troubled Asset Relief Program watchdog.

California has a new short sale law. S B 931

Short Sale attorney, stop foreclosure, real estate attorney, short sales in San Diego. Orange County short sales

California dramatically changes Short Sale Law, in my opinion.
Senate Bill No. 931 is signed into Californial law by Govenor Schwarzeneger. This became California’s short sale law around the same time he vetoed a more expansive law. I think he did a great job.
And I think it will turn out to be great for homeowners who only have one loan on their on their residence. In my experience most short sales still seem to involve two loans. But as property values start to return to 1990s pricing, we are starting in some areas we are starting to see more owners who have only one loan. (This law will also prevent some strategic defaults, as myself an other foreclosure attorneys will have to advise fewer people that a foreclosure may be more air tight than their short sale approval letter.)

Video of a short sale in Oceanside CA

short saleshort sale in CA Short sale in Oceanside California. Listed on the San Diego MLS.
Price as of now is 300,000 but as with all short sales, we will have to negotiate price with the lender, and negotiate a release of deficiency for the sellers. (our clients).

John McConnin
Real Estate Broker Attorney
McConnin and Company Realty

FavoriteRealEstate.com
Upsidedownrealestate.com

How long will a short sale stay on my credit

The fico people report that most negative information will stay on your report for a maximum of seven years.

They report the following information can remain longer:

"Credit Accounts:
Negative information remains for 7 years from the initial missed payment that led to the delinquency.

Active positive information can remain indefinitely (if an account is closed that has been positive, then it will typically remain on your report for 10 years after the date the account is closed).



Collection Accounts:
A collection account remains for 7 years from the initial missed payment that led to the collection.




Public Records:

Chapter 7, 11 and 12 bankruptcies remain for 10 years from the date filed.

Completed Chapter 13 bankruptcies remain for 7 years from the date paid, and 10 years if not completed.

Tax liens remain for 7 years from the date filed if paid and remain indefinitely if not paid.

All judgments remain for 7 years from the date filed.



Inquiries:

Inquiries remain for 2 years.



New York State Residents Only:

Satisfied judgments remain 5 years from the date filed.

Paid collections remain 5 years from the date of last activity.



California State Residents Only:

All tax liens remain 7 years from the date filed."

For more information on short sales

Foreclosure, fire insurance and short sales

If your real estate was upside down and damaged in the recent San Deigo fire, you may want to consider all your options before you rebuild.

If you had been considering a short sale you may wish to consider a deed in lieu with certain conditions set up to either preserve the status quo or improve your position vis a vis a short sale and deficiency judgments or tax liability for loan forgiveness.

Before entering into any agreement you should have your deal reviewed by san diego attorney familiar with pre-foreclosure solutions.

Short sale and foreclosure warning

Realty Times - Real Estate News and Advice: "Furthermore, you want to make absolutely sure that even should the lender approve the short sale, you will not be obligated to make up this difference, which is called a deficiency. Unfortunately, most lenders will not put their agreement in writing, so your legal advisors will have to satisfy themselves -- and you -- on this matter."

Other real estate lawyers are starting to warn Realtors (at least implicitly) that the short sale paperwork must be reviewed by an attorney. In California is particular important that a san diego homeseller or a seller in any other part of the state understand what their exposure to deficiency is.

this is becoming my mantra. Because of the protections built into the are of foreclosure law, some Californians are better of accepting a foreclosure than a short sale. Do not do a short sale until you have been advised by someone licensed to give you an opinion which is backe up by mal practice insurance. (in my legal opinion). Too many people have contacted me after it is too late. They did a short sale and now the lender is seeking to collect on the deficiency after a successful short sale

Short Sales Effect Credit - Impact of Short Sales on Credit Reports - How Short Sales Affect Credit

Lately I have been getting a lot of questions for California Real Estate owners about how a short sale will effect their credit. I am giving a link to this information because I have found some of this realtors information to be pretty good but not perfect in the past. I have also found many Realtor cite making roughly the same claims about the effect on an upside down homeowners credit. However I rarely see the cite attribute the information to anyone.

Next, I note that this information may be old and getting older. As I have reported elsewhere on this blog it has been reported the Fico people are working to make a short sale and a foreclosure have an equivalent effect on your credit report. It makes sense because a short sale is really no better than a deed in lieu. Finally, I would like to remind people that you really need both a Realtor and an attorney working as a team to create your best solution.

Short Sales Affect Credit - Impact of Short Sales on Credit Reports - How Short Sales Affect Credit

here is a summary of what the realtor resported:

Fico points lost:

* Foreclosure or Deed-in-Lieu of Foreclosure
250 t0 280 points
* Short Sale
80 to 100 points
Waiting Period Before Buying Another Home

* Foreclosure or Deed-in-Lieu of Foreclosure
36 months till you can get a reasonable rate on your loan
* Short Sale
18 months
Please remember to make sure you are crafting your solution to eliminate deficiency judgments and/or tax liablity for loan forgiveness. (something you can do by yourself or with your lawyer) If your Realtor claims to be able to negotiate these agreements for you - it may be a good thing - because imo they will be practicing law without a license. Just make sure they work for a large non indenpendent broker with deep pockets.