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Realtors, in this market….being a HREU Certified Short Sale Specialist is an obvious key for your success. Consider the incredible number of homeowners who are upside down in their homes. When those homes want to sell…or have to sell….if they don’t list their home with an agents who knows how to sell a Short Sale they will lose the home to foreclosure. Watch the FREE Agent Short Sale Secrets video and download the FREE Agent Short Sale Secrets book.

Here are a few exerts from Yahoo News.

Making Homes Affordable Program….

* Eight months later, the plan is plagued by delays, red tape and, some critics say, a reluctance by banks to do their part. Just 17 percent of eligible borrowers have had their loans modified and monthly payments cut. Hardly any have been given a cut in the amount they owe on homes which are now worth less.

* Between July 2007 and August 2009 there were more than 7 million foreclosure filings, according to said on October 8 that under HAMP more than 500,000 people so far had their payments cut, slightly under 17 percent of those deemed eligible, ahead of the department’s November 1 deadline for reaching that number.

* But Treasury officials concede that even if HAMP is a success, millions more foreclosures remain likely.

* Another problem is the number of borrowers who re-default on their modified loans. The says 56.2 percent of loans modified in the second quarter of 2008 re-defaulted after 12 months.

* According to Amherst Securities, an even higher 70 percent of homeowners re-default within 12 months of a modification — but it stresses its data does not include HAMP modifications.

* On October 9, a day after the Treasury announced HAMP was ahead of target, the A servicer must offer a short sale or DIL to a borrower who met the eligibility criteria for HMP (including hardship and DTI greater than 31%) and either:

NOTE: If the net return from the sale exceeds the full payoff of the mortgage, including any mortgage insurance or credit enhancement proceeds, the transaction is not eligible for servicer, borrower or junior lien holder incentive compensation.

10.  Include a requirement that the borrower cooperate fully with the listing and sale and will not materially alter the property during the term of the agreement.

11.  State that the borrower will not receive any proceeds from the sale transaction other than borrower incentive offered under the Home Affordable Short Sale/DIL program, which incentive will be paid by the servicer after closing.

12.  At the option of the Servicer/Investor, the Agreement may include a condition that the borrower agrees, subject to the ability to deliver marketable title, to execute a deed in lieu of foreclosure in favor of the investor if the property does not sell prior to the expiration of the Agreement or any extension thereof.

13.  Other terms as determined by the servicer. If a bona fide purchase offer is submitted at the agreed upon sales price prior to the end of the marketing period specified in the Agreement, the servicer will respond with an Offer Response Letter (Response) within the number of business days specified in the Agreement but in no event more than 10 business days. The Response will indicate acceptance, rejection or specific terms of a counter offer and may be conditioned upon the release of any junior liens or approval from an investor or credit enhancement provider. Servicer may work with the borrower and real estate agent to attempt to clear title and secure release of junior liens, but the servicer is not responsible for ensuring the release of liens. With the borrower’s permission, the borrower’s incentive compensation may be used to obtain release of junior liens or non-real estate title impediments. Upon sale and receipt by the servicer of acceptable net proceeds, the servicer will execute a full release of the mortgage and the servicer will pay the borrower any incentives due under the Agreement. Must be in accordance with investor guidelines. In the event the property does not sell prior to the expiration date of the Agreement or no bona fide purchase offer is received by the end of the marketing period specified in the Agreement or any extension thereof and if the borrower complies with all other requirements of the agreement, the servicer, or the servicer’s legal counsel as required by the investor’s guidelines, will prepare and mail to the borrower a warranty deed and DIL agreement, if: The servicer indicated in the Agreement that it was willing to accept a DIL, The property’s condition and circumstances have not changed materially, and The borrower is able to deliver clear and marketable title. The DIL agreement will state the date by which the property must be vacated and any other terms or conditions, including the incentive compensation payable to the borrower upon vacancy. The borrower must sign and return the DIL agreement and a signed and notarized deed to the servicer by the date stated therein, but in no event will the DIL agreement and deed be due back in less than 14 calendar days. Following receipt of the executed and notarized deed and DIL agreement, verification of clear title and verification that the property was vacated in accordance with the conditions of the DIL Agreement, the servicer will pay the borrower any incentives due under the agreement. Upon recordation of the deed the servicer will execute a full release of the mortgage. Borrowers are eligible for incentive compensation from TARP funds to assist with relocation expenses of $1,500 following successful closing of a short sale or recordation of a DIL. Servicers are eligible for incentive compensation from TARP funds of $1,000 following successful completion of a short sale or a DIL. Investors may, at their discretion and utilizing their own funds, offer additional incentives to borrowers or servicers to secure a successful short sale or DIL. In conjunction with a successful short sale or DIL:

I have done close to 100 assignments for banks, to talk to people about options for saving their home. In all cases I have handled in the past 2 months, HAMP is a total joke. B of A asks me to get the borrower on the phone so they can tell them about the program. In every case, when I put the borrower on the phone, HAMP was never mentioned, they actually just wanted to browbeat the borrower into a promise of when they could send in a payment. Wells Fargo offers to cut the borrowers payment in half for 6 months, but on the seventh month they want a $10,000 payment. If the borrower could come up with $10k in 7 months, they would probably be making their payment this month.

Can someone provide me with the MHA Article Reference Numbers to quote to servicers and banks regarding the $1500 Borrower incentive and the article pertaining to lowering commissions. Servicers will often say they won’t approve the short sale unless I lower the commission. I am under the impression they are now allowed to do that anymore. I would like a Rule Reference to quote to them.

It’s a shame that now, after that ‘Super Star Interview where two HREU students were the the ones interviewed, it comes to light the information was somehow misinterpreted. Because if I recall correctly (and you can go to the replay on September archieve), one of the students and others stated that governor Arnold Schwarzenegger sign into law to be effective January 01, 2010, that will requiere Banks to answer submitted offers 4 days after submitted, 21 days if non FHA loans. To now come out and put on the blog ‘…If this offend the offender, so it be.’ is an act of not owning the role the interviewer played during this interview. As during in some of these calls the interviewer also confirm (eventhough it was done verbally) some, if not all, the rumor about new procedures/guidelines coming up with regard to short sales, mainly thru the California area. So if the purpose of this blog is to alert every HREU student and non-student who regularly come to this blog in search of new information, then lets stick to the correction and not point fingers by referring to the alleged ‘offender’ as the person responsible. I am pretty sure that some of the replay can easily implicate others as well.

Here are a few recent posts with other info…the post where we corrected the misinfo is the last link:

Source: Real Estate Newsletter