"Making Home Affordable"
August 26, 2010
In early 2009, the Obama Administration and Treasury Department launched the Nationwide "Making Home Affordable" program for distressed homeowners. This program focused on stabilizing the housing market and helping home owners facing hardship avoid foreclosure.
As of June 2010 these are the numbers that have been published from several sources including the June "Making Home Affordable" scorecard.
6.3 million U.S. homeowners are not current on their mortgage;
There are 1.1. million REO (Bank-owned) properties
3.2 million Home Affordable Modification Program (HAMP) eligible 60 day+ delinquent loans
Of that 3.2 million, 11.7 million borrowers are likely to be eligible for HAMP modifications
As of June 2010, there are 389,000 active permanent modifications
Any borrower who either fails or is denied a loan modification is someone who could consider foreclosure alternative options.
"Home Affordable Foreclosure Alternatives" is a government sponsored program designed to offer incentives to the investor, the servicer and the borrower to do a short sale of the borrower's property and to prevent a foreclosure.
For the borrower who is eligible to participate, the borrower's debt is eliminated as the HAFA program mandates forgiveness of all liability for repayment of both first and second lien holders.
The borrower may also receive up to $3000 for assistance in relocating. The program works with servicers and investors and is subject to investor constraints and must be implemented within the investor guidelines.
The California Association of Realtors is offering classes for agents because agents need to understand the program in order to assist the consumer who could be eligible to participate.
HAMP and HAFA will become important acronyms as the government attempts to stabilize the housing market. Thus far the programs have not had the desired effect of speeding up the length of time it takes to receive short sale approval, but as investors and servicers become familiar with the processes, it is everyone's hope that it will provide the benefit that the government intended.
In early 2009, the Obama Administration and Treasury Department launched the Nationwide "Making Home Affordable" program for distressed homeowners. This program focused on stabilizing the housing market and helping home owners facing hardship avoid foreclosure.
As of June 2010 these are the numbers that have been published from several sources including the June "Making Home Affordable" scorecard.
6.3 million U.S. homeowners are not current on their mortgage;
There are 1.1. million REO (Bank-owned) properties
3.2 million Home Affordable Modification Program (HAMP) eligible 60 day+ delinquent loans
Of that 3.2 million, 11.7 million borrowers are likely to be eligible for HAMP modifications
As of June 2010, there are 389,000 active permanent modifications
Any borrower who either fails or is denied a loan modification is someone who could consider foreclosure alternative options.
"Home Affordable Foreclosure Alternatives" is a government sponsored program designed to offer incentives to the investor, the servicer and the borrower to do a short sale of the borrower's property and to prevent a foreclosure.
For the borrower who is eligible to participate, the borrower's debt is eliminated as the HAFA program mandates forgiveness of all liability for repayment of both first and second lien holders.
The borrower may also receive up to $3000 for assistance in relocating. The program works with servicers and investors and is subject to investor constraints and must be implemented within the investor guidelines.
The California Association of Realtors is offering classes for agents because agents need to understand the program in order to assist the consumer who could be eligible to participate.
HAMP and HAFA will become important acronyms as the government attempts to stabilize the housing market. Thus far the programs have not had the desired effect of speeding up the length of time it takes to receive short sale approval, but as investors and servicers become familiar with the processes, it is everyone's hope that it will provide the benefit that the government intended.
posted by shirley harry at 7:58 AM
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