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5.24.10 HAFA 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). The HAFA program takes effect on April 5, 2010—although some servicers may implement it sooner, if they meet certain requirement--and sunsets on December 31, 2012.
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5.24.10 HAMP:If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.
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What is a FORECLOSURE?
If you stop making your mortgage payments in California the lenders recourse is to start the foreclosure process. To avoid this you should consult with one of our specialists to look at the possibility of doing a Short Sale.
When a bank forecloses on a home, it is typically because of non-payment of the mortgage. The process of taking the home back is known as the ‘foreclosure process', which ends when the home is auctioned in a non-judicial foreclosure – which is the most common type of foreclosure in California. When no one bids at the auction, ownership reverts back to the bank that brought the action. When the bank takes the property back, it refers to these properties as “Real Estate Owned”, or more commonly REO.
The time-line for a non-judicial California Foreclosures under a Deed of Trust is detailed below. Foreclosures begin when the borrower stops making the monthly payments to the Lender, the first missed payment is technical default, but in practical terms, most Lenders do not begin the process until the third payment is missed. If the Lender cannot resolve the defaulted payment amount with the borrower through Forbearance or other Loss Mitigation measures, the Lender will instruct the Trustee to begin Foreclosure proceedings.
Day 1
Notice of Default is filed with the county recorder.
Within 10 business days
Mail Notice of Default to borrower address
Within 1 month
Mail Notice of Default
After 3 months
Set Trustee Sale date
25 days before Trustee Sale date
Send notice of sale to I.R.S.(when necessary)
Within 10 days from 1st publication of Trustee Sale
Send beneficiary request for property directions
14 days before Trustee Sale date
Record Notice of Trustee Sale
7 days before sale date
If court action, 7day rule may apply
5 business days before sale date
Expiration of borrower's right to re-instate the loan
Sale date
Property is sold to highest third party bidder or reverts to Beneficiary at public auction
What Happens to yur home:
Why Wasn't the Home Bought at Auction?
The biggest reason a Hemet home does not receive any bidders at the auction is because the amount of the debt is more than the home is currently worth. In the current REO driven market it is rare that a home goes to auction with any equity in it.
Most investors will not bid on a property that has anything less than 30% equity in it. Most first time buyers will not bid at auction because it is an intimidating affair that requires seasoning. Homes bought at auction require cash or certified funds and not a pre-approval letter from a lender.
Many REO's are in poor condition and will require a lot of rehab – which is why it is dangerous to buy a REO home with less than 30% equity – sight unseen. However, once these rehab REO properties go on the market and ample inspections and due diligence can be performed, these same REO properties can be literal gold mines for either the investor or first time home buyer.
Why Won't the Banks Hold the REO Properties?
Banks are not in the business of owning real estate – they are in the business of financing it. An REO tells the world that the bank made a bad loan – it is considered a liability and not an asset on their balance sheet. Every day that the bank owns and controls a piece of real estate, it costs the bank money.
Insurance costs and claims is a major detraction to owning REO properties. Regardless what they sell the property for – they are typically taking a hit financially. Not only do they have issues with their insurance carriers and their financial reports the federal government can penalize banks if they have an excess amount of REO inventory on their books. It is typical for banks to borrow money from ‘The Fed' and when the numbers don't look right, the bank will have to pay more for the money they borrow. When the bank has too many REO's, the Federal Government and the stockholders look at the bank as being poorly managed. There are also numerous re-occurring costs associated with maintaining the property - taxes, insurance, sewer, water, electric and HOA bills…not to mention the staff of people needed to administer the entire process.
How can you avoid foreclosure? Well with our help we can negotiate with your lender or lenders to allow enough time to sell your home prior to it being foreclosed. Our team will market your home at a price agreeable to your lender as a Short Sale. Through our proven marketing system we will endeavor to sell it in the shortest time possible to avoid the risk of foreclosure.
We do all this at no cost to you. You should avoid anyone who tries to charge you for such service. Clcik on any of our links for more information on the process and then call us to discuss your individual situation 888-640-2346 x 411 with one of our Short Sale help team.
Our web site is packed with useful information and provides the tools you need to back up the assistance provided by our professional associates.
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Short Sale Help in Hemet & Yucaipa Pre-Foreclosure Assistance Real Estate - Hemet Short Sale Advice Yucaipa Short Sale Help - San Jacinto - Banning - Beaumont By Reviron Realty - Short Sale Help - Inland Empire & Los Angeles
We work with all Banks to facilitate Short Sales including Bank of America, Countrywide, OneWest Bank, Ocwen, American Home Loans
HSBC, Wachovia, Wells Fargo, Indymac, Saxon Mortgage, Chase, Capital One and Citi Financial