1. Secure outdoor equipment as trash containers, lawn furniture, umbrellas, construction supplies. Flying debris is the major cause of damage and injury.
2. Locate and check your flashlights, get additional batteries for them and emergency radios. Do Not recommend candles as a fire hazard.
3. Prepare for possible long power outages.
4. Do not operate generators in closed areas. Also safely store fuel sources.
3. Prepare for downed trees and wires.
4. Employees, residents, and volunteers develop family disaster plans, NOW!
5. Do not call 911 unless there is an emergency
Thursday, August 25, 2011
Monday, August 15, 2011
Liquidity, Value, Foreclosures, Short Sales, and Propping Up Housing
Using the federal government appropriating over a trillion dollars to spending and stimulus programs along with the Federal Reserve private bank method pumping into the markets close to $10 trillion in liquidity, can there genuinely be a liquidity crisis anymore? And if so, how numerous more trillions of dollars of liquidity will likely be required to solve the predicament?It should be obvious by now to anyone paying attention that the markets aren't in require of more liquidity. Through the initial $300 billion Troubled Assets Relief Program (TARP), the US Treasury invested in banks and bought unique classes of preferred stock. In response, the banks receiving TARP cash basically stuffed it within the mattress.
The real difficulty is that the value of many of the assets that as soon as backed up the debt securities held by these banks have fallen so dramatically. This was bound to happen when the banks started taking benefit of the Federal Reserve's artificially low interest rates to start giving loans to individuals who would never be able to pay them back.
Values were inflated by every person involved within the actual estate transaction and everybody went along with the myth. Borrowers wanted to get in on a bubble economy and had been willing to finance 100% of the purchase cost, realizing they could just sell in a year or two and make a huge profit.
Real estate agents knew that the value of the home and its sales cost would determine their commission.
Mortgage brokers knew that their pay (through commissions, fees, yield spread interest) would be based on the loan amount.
Appraisers knew that if they failed to appraise a household for the maximum marginally-plausible quantity, they would get no further small business from banks or mortgage brokers.
Banks knew that the bigger the mortgage, the a lot more the debt security could be worth. And they also knew that, if the owners fell behind on their loan they could just refinance or sell and take their profits. As well as if they did not sell, the bank could foreclose and sell it later on and take the profits of the inflating bubble for themselves.
When defaults began to rise and values started to fall, the dodgy debts became entirely worthless. Individuals who can not pay a mortgage on a property with an inflated value can sell. Individuals who can not pay a mortgage on a property that is underwater are forced into foreclosure unless they are able to function with their lender.
Values have fallen in real estate, but sellers can not list their properties for sale when the mortgage is 150% of the current market value of the house. If they want to make an effort to sell to stop foreclosure at all, they need to sell for a high enough price to pay off the mortgage corporation. And nobody is buying at those costs anymore.
They will need a short sale to be licensed by the bank as a way to sell for a reasonable cost. But the banks are notoriously difficult to work with negotiating for short sales. If they ever acknowledge receiving the give at all, it truly is too often turned down.
Then, several months later, the bank forecloses and lists the property on the market for even less than the original short sale supply. The homeowners had been not allowed to sell for a greater price to avoid foreclosure than the banks occasionally list the properties for soon after they take them back!
At the moment, the banks are shooting themselves, homeowners, and home buyers in the foot in not accepting that real estate values have fallen. But the banks also have quite small incentive to acknowledge falling residence prices.
First of all, if residence values had been accepted to be lower than they had been in 2006, this would instantly discount the value of the mortgage securities. Quite a few banks that invested heavily in CDOs, MBSs, ABSs, and the rest would have to face that they're already insolvent.
Second, banks are doing just fine in receiving funds from the government to continue operations without having to acknowledge any of the errors of the past. Congressional tongue-lashings have been the worst most banks have had to handle, and their reward for such public spectacles is typically billions, if not tens or hundreds of billions, of dollars.
Third, the government has stepped in to create it less difficult for banks to hide their losses on mortgage securities by pressuring the accounting planet to relax mark-to-market rules. This makes it easier for the banks to keep inflated values of these assets on the books whilst their borrowers have to deal with actual falling household costs within the real world.
So a bank is able to keep a mortgage on its books valued higher than any rational buyer would ever pay for a specific property. The homeowners are facing foreclosure and would just like to sell for the marketplace value and put the whole experience behind them.
But the banks plus the government have facilitated a organization environment exactly where it's a much better deal for the banks to steer clear of recognizing falling house values and merely decline short sales. Homeowners are forced to make an effort to sell for what they know to be unreasonable prices.
Thus, the government allows housing costs to be propped up and gives banks incentives not to function with borrowers to sell properties. As a result, foreclosures increase, the banks declare the issue to be poor borrowers and "liquidity," and come hat in hand to the government. The government hands them more money and gives them more advantages to prop up housing prices.
The real difficulty is that the value of many of the assets that as soon as backed up the debt securities held by these banks have fallen so dramatically. This was bound to happen when the banks started taking benefit of the Federal Reserve's artificially low interest rates to start giving loans to individuals who would never be able to pay them back.
Values were inflated by every person involved within the actual estate transaction and everybody went along with the myth. Borrowers wanted to get in on a bubble economy and had been willing to finance 100% of the purchase cost, realizing they could just sell in a year or two and make a huge profit.
Real estate agents knew that the value of the home and its sales cost would determine their commission.
Mortgage brokers knew that their pay (through commissions, fees, yield spread interest) would be based on the loan amount.
Appraisers knew that if they failed to appraise a household for the maximum marginally-plausible quantity, they would get no further small business from banks or mortgage brokers.
Banks knew that the bigger the mortgage, the a lot more the debt security could be worth. And they also knew that, if the owners fell behind on their loan they could just refinance or sell and take their profits. As well as if they did not sell, the bank could foreclose and sell it later on and take the profits of the inflating bubble for themselves.
When defaults began to rise and values started to fall, the dodgy debts became entirely worthless. Individuals who can not pay a mortgage on a property with an inflated value can sell. Individuals who can not pay a mortgage on a property that is underwater are forced into foreclosure unless they are able to function with their lender.
Values have fallen in real estate, but sellers can not list their properties for sale when the mortgage is 150% of the current market value of the house. If they want to make an effort to sell to stop foreclosure at all, they need to sell for a high enough price to pay off the mortgage corporation. And nobody is buying at those costs anymore.
They will need a short sale to be licensed by the bank as a way to sell for a reasonable cost. But the banks are notoriously difficult to work with negotiating for short sales. If they ever acknowledge receiving the give at all, it truly is too often turned down.
Then, several months later, the bank forecloses and lists the property on the market for even less than the original short sale supply. The homeowners had been not allowed to sell for a greater price to avoid foreclosure than the banks occasionally list the properties for soon after they take them back!
At the moment, the banks are shooting themselves, homeowners, and home buyers in the foot in not accepting that real estate values have fallen. But the banks also have quite small incentive to acknowledge falling residence prices.
First of all, if residence values had been accepted to be lower than they had been in 2006, this would instantly discount the value of the mortgage securities. Quite a few banks that invested heavily in CDOs, MBSs, ABSs, and the rest would have to face that they're already insolvent.
Second, banks are doing just fine in receiving funds from the government to continue operations without having to acknowledge any of the errors of the past. Congressional tongue-lashings have been the worst most banks have had to handle, and their reward for such public spectacles is typically billions, if not tens or hundreds of billions, of dollars.
Third, the government has stepped in to create it less difficult for banks to hide their losses on mortgage securities by pressuring the accounting planet to relax mark-to-market rules. This makes it easier for the banks to keep inflated values of these assets on the books whilst their borrowers have to deal with actual falling household costs within the real world.
So a bank is able to keep a mortgage on its books valued higher than any rational buyer would ever pay for a specific property. The homeowners are facing foreclosure and would just like to sell for the marketplace value and put the whole experience behind them.
But the banks plus the government have facilitated a organization environment exactly where it's a much better deal for the banks to steer clear of recognizing falling house values and merely decline short sales. Homeowners are forced to make an effort to sell for what they know to be unreasonable prices.
Thus, the government allows housing costs to be propped up and gives banks incentives not to function with borrowers to sell properties. As a result, foreclosures increase, the banks declare the issue to be poor borrowers and "liquidity," and come hat in hand to the government. The government hands them more money and gives them more advantages to prop up housing prices.
Thursday, July 21, 2011
The Truth About Rent To Own
The majority of us are incredibly familiar using the term “rent to own”. Spots such as Prime Time and Rent A Center have constructed an empire with lease to own merchandise, even though the buyer typically ends up paying double what the merchandise is actually worth. Even though this might be wonderful for those who've poor credit rating, the majority of us choose to stay clear of going this route. Houses are no exception, particularly if you are buying a household on the lease to own schedule.
Even though lease to own may be excellent for any short period of time, it proves to be an expensive way for someone to buy something they intend to maintain. Lease to own merchandise for example, may well sound quite compelling at one or two dollars a week. The agreement is generally for around 15 - 20 months, that is wherever the firm makes their money. Even though you may well be paying just one or two bucks a week, the total quantity swiftly adds up to nearly twice the expense of the item.
Along with paying lease, you will also have to pay applicable sales tax as well. Like merchandise, lease to own actual estate has it’s disadvantages. Even although it can be good for individuals with not so great credit history, you will usually wind up paying back a whole lot more than you'll with a home loan. You will even now have to pay again your lender with a mortgage loan, despite the fact that that quantity won’t be nearly as high because it would should you made a decision to get a residence using a rent to own schedule.
In most situations, lease to own houses are put up on the marketplace by the owner. By doing this, you will package directly while using owner. It will begin out as a traditional rent, then proceed to a rent to own schedule in case you choose you need to keep the residence. You as well as the owner will then work out an arrangement, which will normally be quite a few years. Some owners are incredibly flexible and will work with you just to get the cost they want for their home, while others will cost you very a bit more, in order to make a hefty profit.
If you've bad credit history and can’t get approved to get a home loan, then rent to own could be your next very best option. While some do not like to do it due to the cost, for numerous it’s a far better option than an apartment. With lease to own houses you are paying money towards the house, rather than just paying lease. In some situations this really is fine, while you should make sure to double verify using the owner prior to you agree or commit to anything. In this way, you will know how a great deal you will be paying for the house - and for how lengthy.
If you just bought or are considering buying a residence, you will soon acquire quite a few offers in the mail for a variety of products and services for the new household. That is simply because marketing organizations collect your details and sell it to numerous companies as a new homeowner list. Simply because new homeowners require so a lot of different things for their new household, many firms produce and mail postcards or catalogs to such individuals. Exactly the same is true in case you recently started construction or even a remodel of the new house. That information is sold as a new building permit list. Similarly, new mothers and fathers can also find themselves swimming in a variety of offers on a new parent list. It is essential that you pay attention to these kind of offers, which can save you loads of time and money.
Even though lease to own may be excellent for any short period of time, it proves to be an expensive way for someone to buy something they intend to maintain. Lease to own merchandise for example, may well sound quite compelling at one or two dollars a week. The agreement is generally for around 15 - 20 months, that is wherever the firm makes their money. Even though you may well be paying just one or two bucks a week, the total quantity swiftly adds up to nearly twice the expense of the item.
Along with paying lease, you will also have to pay applicable sales tax as well. Like merchandise, lease to own actual estate has it’s disadvantages. Even although it can be good for individuals with not so great credit history, you will usually wind up paying back a whole lot more than you'll with a home loan. You will even now have to pay again your lender with a mortgage loan, despite the fact that that quantity won’t be nearly as high because it would should you made a decision to get a residence using a rent to own schedule.
In most situations, lease to own houses are put up on the marketplace by the owner. By doing this, you will package directly while using owner. It will begin out as a traditional rent, then proceed to a rent to own schedule in case you choose you need to keep the residence. You as well as the owner will then work out an arrangement, which will normally be quite a few years. Some owners are incredibly flexible and will work with you just to get the cost they want for their home, while others will cost you very a bit more, in order to make a hefty profit.
If you've bad credit history and can’t get approved to get a home loan, then rent to own could be your next very best option. While some do not like to do it due to the cost, for numerous it’s a far better option than an apartment. With lease to own houses you are paying money towards the house, rather than just paying lease. In some situations this really is fine, while you should make sure to double verify using the owner prior to you agree or commit to anything. In this way, you will know how a great deal you will be paying for the house - and for how lengthy.
If you just bought or are considering buying a residence, you will soon acquire quite a few offers in the mail for a variety of products and services for the new household. That is simply because marketing organizations collect your details and sell it to numerous companies as a new homeowner list. Simply because new homeowners require so a lot of different things for their new household, many firms produce and mail postcards or catalogs to such individuals. Exactly the same is true in case you recently started construction or even a remodel of the new house. That information is sold as a new building permit list. Similarly, new mothers and fathers can also find themselves swimming in a variety of offers on a new parent list. It is essential that you pay attention to these kind of offers, which can save you loads of time and money.
Wednesday, July 20, 2011
RE/MAX CONNECTION OFFERS NEW PRODUCT TO PROTECT HOME VALUES IN SOUTH JERSEY
RE/MAX CONNECTION OFFERS NEW PRODUCTTO PROTECT HOME VALUES IN SOUTH JERSEY
MARLTON, N.J. – RE/MAX Connection Realtors today introduces a financial product to the South Jersey/Philadelphia market that allows home sellers and buyers – as well as current owners – to protect the value of their houses against the uncertainty of today’s housing market.
The product, called Home Price Protection and backed by EquityLock Solutions, can – depending on the circumstances – provide a payoff at the time of sale to make up for potential loses in the value of the home.
Christopher J. Brown, CEO of RE/MAX Connection, South Jersey’s leading real estate agency, says the product will have a significant impact on today’s marketplace.
“There are many qualified home buyers not purchasing homes today because they are afraid of losing the equity they put down to purchase the home,” Brown said, “Now, they have a product available to them that provides assurances against such drops in the market area.”
When a homeowner, buyer or seller purchases a Home Price Protection contract – currently available only through an agent at one of the RE/MAX Connection offices in Marlton, Mantua and Turnersville – the terms are based on two factors:
1. How much of their home’s value they plan to protect
2. The current value of the region’s House Price Index as set monthly by the Federal Housing Finance Agency (and available at www.FHFA.gov)
The national average cost of the contract is 1.7 percent of the value they plan to protect. Most customers use the home’s current market price at the time they purchase their EquityLock contract, but any value up to $2 million can be protected. At that point, the 15-year contract begins, and it cannot be cashed in for the first two years of the term.
If, in years three to 15 of the contract, the house is sold, the House Price Index at the time of the sale is compared to the Index level when the contract was originally purchased. If the index is the same or has risen, no payment is made; if the index has fallen, then the home seller or buyer will receive a check in the amount of the value of the contract multiplied by the percentage change in the House Price Index.
In addition to homebuyers, Brown said home sellers can take advantage of this product. When the contract is skillfully negotiated by an experienced real estate agent, sellers can offer Home Price Protection as an incentive to buyers to purchase the home.
“We are pleased to partner with RE/MAX Connection. Agents, homebuyers, sellers and owners have all responded to Home Price Protection with enthusiasm,” EquityLock Solutions Co-founder and CEO TJ Agresti said. “The peace of mind, knowing that a property is protected against local market fluctuations, is invaluable and is winning wide acceptance for Home Price Protection.”
Home Price Protection is not an insurance or security product; it is a financial contract between the purchaser and EquityLock Solutions. Here are a few examples of how a contract purchased through EquityLock Solutions would work:
In July 2011, Mr. Jones purchases a home for $300,000 and a Home Price Protection contract to protect that same value. The local House Price Index at the time is 100. In July 2014, Mr. Jones sells the home under one of the following scenarios:
Scenario A
Mr. Jones sells the home for $325,000 and the local index in his area is 105. Since the index increased, there is no claim to file, and the Home Price Protection contract terminates.
Scenario B
Mr. Jones sells the home for $275,000 and the local index has fallen to 90. EquityLock pays Mr. Jones $30,000 at the time of sale. Why? The local index fell 10 percent; therefore, a payment of 10 percent of the contract price is paid ($300,000.00 X .10 = $30,000.00).
Scenario C
Mr. Jones sells the home for $325,000 and the local index has fallen to 90. Mr. Jones receives a payment of $30,000, even though he did not lose money on the home. The sale price of the home does not matter; it all depends on the current level of the federal Home Price Index.
MARLTON, N.J. – RE/MAX Connection Realtors today introduces a financial product to the South Jersey/Philadelphia market that allows home sellers and buyers – as well as current owners – to protect the value of their houses against the uncertainty of today’s housing market.
The product, called Home Price Protection and backed by EquityLock Solutions, can – depending on the circumstances – provide a payoff at the time of sale to make up for potential loses in the value of the home.
Christopher J. Brown, CEO of RE/MAX Connection, South Jersey’s leading real estate agency, says the product will have a significant impact on today’s marketplace.
“There are many qualified home buyers not purchasing homes today because they are afraid of losing the equity they put down to purchase the home,” Brown said, “Now, they have a product available to them that provides assurances against such drops in the market area.”
When a homeowner, buyer or seller purchases a Home Price Protection contract – currently available only through an agent at one of the RE/MAX Connection offices in Marlton, Mantua and Turnersville – the terms are based on two factors:
1. How much of their home’s value they plan to protect
2. The current value of the region’s House Price Index as set monthly by the Federal Housing Finance Agency (and available at www.FHFA.gov)
The national average cost of the contract is 1.7 percent of the value they plan to protect. Most customers use the home’s current market price at the time they purchase their EquityLock contract, but any value up to $2 million can be protected. At that point, the 15-year contract begins, and it cannot be cashed in for the first two years of the term.
If, in years three to 15 of the contract, the house is sold, the House Price Index at the time of the sale is compared to the Index level when the contract was originally purchased. If the index is the same or has risen, no payment is made; if the index has fallen, then the home seller or buyer will receive a check in the amount of the value of the contract multiplied by the percentage change in the House Price Index.
In addition to homebuyers, Brown said home sellers can take advantage of this product. When the contract is skillfully negotiated by an experienced real estate agent, sellers can offer Home Price Protection as an incentive to buyers to purchase the home.
“We are pleased to partner with RE/MAX Connection. Agents, homebuyers, sellers and owners have all responded to Home Price Protection with enthusiasm,” EquityLock Solutions Co-founder and CEO TJ Agresti said. “The peace of mind, knowing that a property is protected against local market fluctuations, is invaluable and is winning wide acceptance for Home Price Protection.”
Home Price Protection is not an insurance or security product; it is a financial contract between the purchaser and EquityLock Solutions. Here are a few examples of how a contract purchased through EquityLock Solutions would work:
In July 2011, Mr. Jones purchases a home for $300,000 and a Home Price Protection contract to protect that same value. The local House Price Index at the time is 100. In July 2014, Mr. Jones sells the home under one of the following scenarios:
Scenario A
Mr. Jones sells the home for $325,000 and the local index in his area is 105. Since the index increased, there is no claim to file, and the Home Price Protection contract terminates.
Scenario B
Mr. Jones sells the home for $275,000 and the local index has fallen to 90. EquityLock pays Mr. Jones $30,000 at the time of sale. Why? The local index fell 10 percent; therefore, a payment of 10 percent of the contract price is paid ($300,000.00 X .10 = $30,000.00).
Scenario C
Mr. Jones sells the home for $325,000 and the local index has fallen to 90. Mr. Jones receives a payment of $30,000, even though he did not lose money on the home. The sale price of the home does not matter; it all depends on the current level of the federal Home Price Index.
Steps To Take Before You Buy A Home
The prices of South Jersey Homes dropped and although this may look really enticing, it is not advisable to buy impulsively without thinking of the pros and cons of home buying. It is better to take small steps than jumping impulsively and regret later.
Step #1 Consult a broker
Look for a broker in your area that has spent good long years in the field. Although you can consult your real estate agent regarding possible homes that fit your requirements, a broker is more knowledgeable of houses for sale in your area.
Step #2 Get an appraisal
Getting an estimated value of the home you want to purchase will give you a better idea if the seller is asking for the right price or will give you a clue on how to negotiate and eventually get the best deal based on the appraised price. If the appraised price and the actual price of the home is similar then this is a good sign that the seller is honest enough in pricing his Baltimore MD property.
Step #3 Find out the tax assessment
Consider residential properties with low property taxes when you are looking for a home to buy. Be aware of the rise and fall of home values because if home values go up, property taxes also increase. And while price goes down, property taxes also go down. By knowing all these, you can take the chance and ask for lower appraisals which means lower property tax.
Step #4 Ask for utility bills
Home inspection is a must when you are trying to evaluate the physical condition of the home you are interested in buying. Also, ask about the utility bills of the home you are interested in buying. In this way, you will know of the home’s energy consumption and if there are any problems associated with it.
Year 2010 has been devastated with the consequences of homeowner's not being able to pay their mortgage on time which resulted in losing their homes in South Jersey which resulted to more than 100,000 homes. So before you actually get excited in buying your dream house, there are steps that you need to take in order to avoid the mistakes most home buyer’s made.
Step #1 Consult a broker
Look for a broker in your area that has spent good long years in the field. Although you can consult your real estate agent regarding possible homes that fit your requirements, a broker is more knowledgeable of houses for sale in your area.
Step #2 Get an appraisal
Getting an estimated value of the home you want to purchase will give you a better idea if the seller is asking for the right price or will give you a clue on how to negotiate and eventually get the best deal based on the appraised price. If the appraised price and the actual price of the home is similar then this is a good sign that the seller is honest enough in pricing his Baltimore MD property.
Step #3 Find out the tax assessment
Consider residential properties with low property taxes when you are looking for a home to buy. Be aware of the rise and fall of home values because if home values go up, property taxes also increase. And while price goes down, property taxes also go down. By knowing all these, you can take the chance and ask for lower appraisals which means lower property tax.
Step #4 Ask for utility bills
Home inspection is a must when you are trying to evaluate the physical condition of the home you are interested in buying. Also, ask about the utility bills of the home you are interested in buying. In this way, you will know of the home’s energy consumption and if there are any problems associated with it.
Year 2010 has been devastated with the consequences of homeowner's not being able to pay their mortgage on time which resulted in losing their homes in South Jersey which resulted to more than 100,000 homes. So before you actually get excited in buying your dream house, there are steps that you need to take in order to avoid the mistakes most home buyer’s made.
Tuesday, July 19, 2011
Inventory for Investors in Pre Foreclosure Homes
The real estate investor who can purchase property at under fair market value is in good position to make increased profits from the deal . Where does an investor locate excellent properties at severely discounted prices ? One niche market is pre foreclosure homes. Pre foreclosure homes are homes that the bank or lender has filed a notice of default on, but the property has yet to be sold at a public auction or trustee sale. There is a period of time between the filing and the sale when the home owner still has control of the home . To stop the foreclosure, the homeowner must bring mortgage payments to current, or he has the option to sell the property . This period of time is the ideal chance for the real estate investor to make an offer on the home . As an investor, you can increase your profits through negotiating with the seller for a deep discount off of the current market value of the home . As the buyer, you will also be able to inspect the house and learn what repairs and renovations might be needed . This inspection will also help you decide the amount you will offer on the property . There are foreclosure subscription services that will provide listings of pre foreclosure homes. The fee for the service issmall , and worthwhile in time and effort saved. The old method of researching records at the county courthouse was difficult and tedious. While getting to go through the public records is free , your time should be worth more, and the little charge for the subscription service will pay you back with your first pre foreclosure homes purchase. The foreclosure market has been a favorite for the real estate investor because of the severely reduced prices. The same deep discounts can be found on these pre foreclosure homes, with the extra advantage of being able to deal and negotiate with a highly-motivated homeowner . It’s worth taking a look at the pre foreclosure homes market.
Monday, July 18, 2011
Fannie Mae launches exclusive foreclosure deterrence plan
Fannie Mae declares unique foreclosure avoidance planfrom Government Refinancing Assistance In addition to the HAMP and HARP and HAFA foreclosure avoidance programs offered from the federal government, Fannie Mae released its own plan just lately for the numerous loans they back. We obtain this from a recent HousingWire article about the topic: Fannie Mae introduced its version of the Making Residence Affordable Foreclosure Alternatives (HAFA) program Tuesday, implementing the plan for all conventional home loans that are held in Fannie’s portfolio, which are part of an mortgage-backed security (MBS) pool with a distinctive servicing choice, or that are part of a shared-risk MBS pool for which Fannie Mae markets the acquired house.
The Fannie Mae plan takes effect August 1, this year and is created to mitigate the impact of foreclosures on borrowers that are entitled for any mortgage modification below the Residence Affordable Modification Program (HAMP) but were unsuccessful in acquiring one, Fannie said. Like the Treasury Department’s HAFA program, servicers can't think about a borrower for HAFA before borrower is examined and eliminated from eligibility for any Making Home Affordable Modification Program (HAMP) workout strategy. Also like the Treasury plan, Fannie Mae may offer servicers cash incentives for completed HAFA transactions, $2,200 for short sales and $1,200 for deed-in-lieu of foreclosure agreements. Borrowers are also entitled for $3,000 in incentives. That’s much more than within the Treasury’s HAFA program, where servicers are entitled for $1,000 and the borrower gets $1,500. Within the Treasury HAFA, the investor is also entitled for any $1,000 incentive. …
After announcing the plan in October 2009, Treasury’s HAFA plan began in April. The Fannie Mae HAFA plan is the latest in a string of programs designed to help borrowers avoid foreclosure. In addition to HAFA and HAMP workouts, Fannie Mae is letting some distressed borrowers stay in their homes as renters, under the deed for lease (D4L) plan. Below D4L, the homeowner-turned-renter is required to pay fair market rent to stay in their home for up to twelve months. The renter must have enough income to sustain a 31% income-to-rent ratio and rental payments are not subsidized by Fannie Mae, but could possibly consist of renters suitable for Section eight payments. Also, in 03 this year, Fannie Mae instructed its servicers to think about an “alternative modifications” for all mortgages that did not qualify for any permanent conversion below HAMP. That “Alt Mod” plan, which sunsets on August 31, this year, is comparable to HAFA.
The Fannie Mae plan takes effect August 1, this year and is created to mitigate the impact of foreclosures on borrowers that are entitled for any mortgage modification below the Residence Affordable Modification Program (HAMP) but were unsuccessful in acquiring one, Fannie said. Like the Treasury Department’s HAFA program, servicers can't think about a borrower for HAFA before borrower is examined and eliminated from eligibility for any Making Home Affordable Modification Program (HAMP) workout strategy. Also like the Treasury plan, Fannie Mae may offer servicers cash incentives for completed HAFA transactions, $2,200 for short sales and $1,200 for deed-in-lieu of foreclosure agreements. Borrowers are also entitled for $3,000 in incentives. That’s much more than within the Treasury’s HAFA program, where servicers are entitled for $1,000 and the borrower gets $1,500. Within the Treasury HAFA, the investor is also entitled for any $1,000 incentive. …
After announcing the plan in October 2009, Treasury’s HAFA plan began in April. The Fannie Mae HAFA plan is the latest in a string of programs designed to help borrowers avoid foreclosure. In addition to HAFA and HAMP workouts, Fannie Mae is letting some distressed borrowers stay in their homes as renters, under the deed for lease (D4L) plan. Below D4L, the homeowner-turned-renter is required to pay fair market rent to stay in their home for up to twelve months. The renter must have enough income to sustain a 31% income-to-rent ratio and rental payments are not subsidized by Fannie Mae, but could possibly consist of renters suitable for Section eight payments. Also, in 03 this year, Fannie Mae instructed its servicers to think about an “alternative modifications” for all mortgages that did not qualify for any permanent conversion below HAMP. That “Alt Mod” plan, which sunsets on August 31, this year, is comparable to HAFA.
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