Foreclosure Alternatives Program Guidelines Help Troubled Knoxville Homeowners
New guidelines recently released by the U.S. Treasury Department will help troubled Knoxville homeowners through the short-sale process.
The Treasury Department released guidelines and forms Nov. 30 for its new Home Affordable Foreclosure Alternatives (HAFA) program.
The program is part of the Home Affordable Modification Program (HAMP) and provides incentives in connection with a short sale or a deed-in-lieu of foreclosure to avoid foreclosure on a loan eligible for modification under HAMP.
The foreclosure alternatives program is outlined in 43 pages of guidelines and forms designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure and applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions in coming weeks.
The foreclosure alternative program:
• Complements the affordable modification program by providing an alternative for borrowers – the current homeowners – who might be HAMP-eligible but are unable to keep their homes.
• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
• Allows borrowers to receive preapproved short-sale terms before listing the property, including the minimum acceptable net proceeds.
• Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement – up to 6 percent.
• Requires borrowers to be released from future liability for the first mortgage debt – no cash contribution, promissory note or deficiency judgment is allowed.
• Uses standard processes, documents and time frames/deadlines.
• Provides financial incentives: $1,500 for borrower relocation assistance, $1,000 for servicers to cover administrative and processing costs and up to $1,000 for investors for allowing a total of up to $3,000 in short-sale proceeds to be distributed to subordinate lien holders on a one-for-three matching basis.
The program will run April 5, 2010, through Dec. 31, 2012, but servicers may implement it before April 5 if they meet certain requirements.
For more information, visit makinghomesaffordable.gov.
These programs are always changing and constantly being updated and changed. If you are a Knoxville Homeowner having trouble making your mortgage payments contact me. Having the CDPE designation and being part of the CDPE network. I’m updated monthly on all the changes that are happening and able to advise you on the best solutions for you.
My goal is very simple help Knoxville Homeowners avoid foreclosure. I can help you and my services to you are free. If you want to talk about your situation call me at 865-675-8326 or email me at [email protected]
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