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.

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.

Short Sale Solutions

As a home owner you may be in the situation like many many thousands are where you owe more to your mortgage servicer than the home is currently worth.
A Short Sale is the process where your lender agrees to let you sell the home for less than is owed and then forgive the balance of the debt owed For example if your home is now worth $200,000 but you owe $250,000 in outstanding loans then normally the only way you could sell your home would be to pay back the difference in cash back to the lender when you close escrow as the proceeds from the sale would not cover the debt owed.
Obviously, if you do not have to sell your home, you could wait out the market and hope for a turnaround in real estate values. However, if you do have to sell your home you basically have three options. First, you can bring cash to the table. In the example above you would sell your home for $200,000 and pay another $50,000 to the lender out of your pocket to pay off the loan on your property. Second, you could let the home go into foreclosure. The lender will go through the foreclosure process, force you out of your home and then auction it off to the highest bidder at a foreclosure or Trustee's auction. The third option is to pursue a short sale
This transaction is called a Short Sale. This page offers information about the basics of short sales and we strongly recommend you contact one of our trained Short Sale Professionals to assist you through this complicated process.
Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

Why Will a Lender Consider a Short Sale

Most lenders are not excited by the prospect of having to do a short Sale, but they are realistic enough to realize that there are many benefits to accepting a Short Sale over the alternative, foreclosure, which costs them more both financially in terms of time and may be in their best interest.
With a short sale a property can be sold and the loan taken off their books fairly quickly. If they pursue a foreclosure they run the risk of the process taking a substantial amount of time during which the value of the property is depreciating. Also, buyers will tend to write low ball offers when they know that a bank or lending institution owns the property. The property will also be left vacant which can result in vandalism and deterioration. Some owners will even gut the house just before the foreclosure sale as a way to 'get back' at the lender. This is illegal but nonetheless happens on occasion. So, you can see why a lender might want to go the short sale route and get the loan off of their books with minimal hassle.

How it Works

We are here to help you understand the process and work with you to suit your individual situation. Call today 888-640-2346 x 411 and talk with one of our Short Sale help team.

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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