Posts Tagged ‘nar’

It’s official! Short sale process streamlined

Monday, April 5th, 2010

As of today, the short sale process is streamlined. However, it remains to be seen how seamless the changeover will be for lenders.

The Home Affordable Foreclosure Alternatives (HAFA) program provides the following incentives.

  • $3,000 to borrowers for relocation assistance
  • $1,500 to servicers for administrative and processing costs
  • Up to $2,000 to investors who allow up to $6,000 in short sale proceeds to be distributed to subordinate lien holders

HAFA also provides a big protection for participating sellers: “Requires borrowers to be fully released from future liability for the first mortgage debt and, if the subordinate lien holders receives an incentive under HAFA, those debt as well (no cash contribution, promissory note, or deficiency judgment is allowed).”

The National Association of Realtors reports that borrowers will have to meet certain criteria to qualify for this program.

  • “Principal residence. The property may be vacant up to 90 days before the date of the Short Sale Agreement (SAA), Alternative Request for Approval of Short Sale, or DIL (deed in lieu of foreclosure) but only if the borrower documents they were required to relocate at least 100 miles from their home for purposes of employment and they have not purchased another property in the 90 day period.”
  • “First lien originated before 2009″
  • “Mortgage delinquent or default is reasonably foreseeable”
  • “Unpaid principal balance no more than $729,750 (higher limits for two- to four-unit dwellings)”
  • “Borrower’s total monthly payment exceeds 31% of gross income”

HAFA’s goal is to prevent underwater properties from going into foreclosure.

The National Association of Realtors (NAR) produced the following materials for consumers.

The US Treasury Department also released its own guidelines for the program.

DHW asks: Do you think HAFA will successfully streamline the short sale process?

Critics be damned. Home sales up, prices down

Tuesday, November 10th, 2009

Critics of the Housing Tax Credit were quieted, if only briefly, when the National Association of Realtors (NAR) released data for third quarter home sales. According to the trade group, home sales increased by nearly 6% over this same time last year. Despite the spike in sales, prices have fallen more than 11% during the same period. The U.S. median existing single-family price for the third quarter was $177,900.

Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.

NAR chief economist,  Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.

DHW asks: Do you see a bottom to the housing market?

Obama to sign unemployment benefits, $8000 tax credit bill

Friday, November 6th, 2009

President Obama is scheduled to sign bill H. R. 3548, extending unemployment benefits to all states.  When signed, the bill will also extend the $8,000 tax credit for first time home buyers as well as initiate a new $6,500 tax credit for those home buyers who have owned a primary residence for at least 5 years.

On Thursday, the National Association of Realtors released detailed guidelines and a Frequently Asked Questions brochure for the tax credits. The new $6,500 tax credit takes effect the day the President signs the bill.

DHW asks: Do you think the new $6,500 tax credit will help boost real estate sales?