This could be HUGE!

Last week I watched a web cast with an executive at BofA and he stated that they expected to increase the number of short sales they do in 2012 by 60%.  It looks like they are finally realizing that short sales are more beneficial  to the banks as well as the seller.  There is just one small problem…

They are not set up to handle that.

So I thought…

Cooperative Short Sales

As an alternative to the HAFA short sale option, BofA has rolled out a Cooperative Short Sale that promises to get approvals in 10 days.  You can submit an application at the time the home is listed and market a pre-approved short sale.  This looks to be very similar to HAFA without a huge amount of forms to fill out. Streamlined paperwork and less financial disclosure means this process can really be done quickly.

Imagine a world where short sales closed as fast as traditional home sales. [Read more…]

What The Heck is a HAFA?

HAFA stands for Home Affordable Foreclosure Alternatives and it is part of the Making Home Affordable program created by the Obama Administration to help homeowners avoid foreclosure.

Unlike most features in this program, HAFA is used when staying in the home is not affordable or is too much of a burden to bear and a short sale is needed.

In order to truly understand HAFA, you need to know that its is a supplement to a program called HAMP (Home Affordable Modification Program).  The goal of this program is to keep distressed homeowners in their homes through a loan modification.  Because there is a large number of homeowners that can not qualify for a loan modification, have defaulted on a loan modification, or just need to sell, the HAFA program was introduced as a way to “exit gracefully” in their words.

The features and benefits to a HAFA short sale are many…

[Read more…]

Navigating Short Sales in Oregon

I had the pleasure of attending a short sale training class this past week that focused on clarifying Oregon Law as it applies to handling short sales.  It is amazing to me how many agents aren’t aware of what they can and more importantly can’t do when it comes to the handling of short sales in Oregon.

To Protect and Serve

Because of the financial impact now and in the future, the State of Oregon has passed laws to regulate what is required of anyone receiving compensation on a short sale transaction.  You will want to read ORS Chapter 697 to get all of the details.  But I will highlight a few points that most real estate agents aren’t aware of. [Read more…]

Short Sales for FHA loans

We just closed another short sale last week where the existing loan was an FHA loan.  HUD (who runs FHA loans) has a very specific set of rules with regards to short sales.  Here is a list of some of the pros and cons when dealing with a HUD short sale.

The Good:

HUD has a predetermined price that they will accept when doing  a short sale.  This price is based on an appraisal that can be completed well before an offer is placed on the listing.  They will tell and agent upfront what they are willing to accept.

No games, no gimmicks, no guessing.

They will take 88% in the first 30 days, 86% in the next 30 days, and 84% after that.  Note that this is the NET price that HUD will take.

They will also pay up to $1000 to the seller for relocation expenses.

The Bad: [Read more…]