Previously the government was running a program to try and help homeowners who were caught “upside down” (who owe more than their home is worth) in the market. Despite their best intentions, this program was a failure. It was reported that 9 out of 10 people whom the program was intended for did not get help! As a result, they introduced the HAFA program.
HAFA stands for “Home Affordable Foreclosure Alternative” program. It opens the door to a lot of people who need help. It makes it easier to qualify for help (one of the biggest problems previously). For those who still do not qualify, or who choose to short sell their home, it provides $1,500 at closing to help them get started at their next residence (most likely a rental). This was intended to both help get the homeowner established and to motivate them to short sell their home because there is time and effort involved.
If you are struggling, please ask your lender about the HAFA program and find out if you qualify. It can help you save your home or help you get started at your next home. If you are looking to short sell your home, contact one of the agents at Tiered Real Estate who will be happy to help you.
In a previous post we discussed how you should approach you bank for help whether or not you are behind in your payments and start working with them right away. Many people have followed our advice and it has been difficult for everyone. A recent article discussed just how bad it is.
There are 2.7 million borrowers who are currently 2 months or more behind in their payments (according to the Treasury Department), yet offers have only been extended to 400,000 of those borrowers. That is a terribly low 14.8%. Only 235,000 of those have entered into some sort of agreement with their lender. This works out to less than 9% of the homeowners who need help are actually receiving it!
Before you start packing your boxes and swearing off your lender, we have some good news for you. We have been working with several homeowners who are part of the 2.7 million who are behind (not to mention several who are in trouble but not behind). One family in particular talked to their lender, filled out stacks of paperwork, talked on the phone and were rejected. While most would wash their hands and say “I’m done”, they persisted. They reapplied. They made more phone calls. They filled out more paperwork. They succeeded and received a loan modification!
The old adage appears to be true in the modern era. If at first the bank rejects you, don’t give up. Apply again! Truthfully, the banks don’t want to own your home and if all 2.5 million homes that are in trouble (and not receiving help) end up going through foreclosure, the banks will keep the market in the doldrums for years to come. In addition, the government is trying to help the economy and get the banks to use the programs they have implemented. Keep trying! You never know when a modification will be available for you.
If you need help figuring out your home’s value or if you want to sell your home, contact one of the great agents at Tiered Real Estate and we will be happy to help you!
This is hotly debated topic with many people arguing either side. One side argues that you should contact your bank while all of your payments are current because banks are flexible and want to keep the money flowing. The other side argues that you should be behind in your payments (whether it be intentionally or unintentionally) so that the bank will understand that you can’t pay and will be more motivated to work with you since they don’t want your home.
What we at Tiered Real Estate have found is that it depends on the bank and even on your personal situation. The best thing that you can do is look at your situation today. Can you pay your mortgage? Will you continue to be able to pay your mortgage (if everything stays the same as it is today)? If you answered ‘no’ to either of these questions then contact your lender (or lenders) right away. Talk to them and let them know your situation and ask them what they want you to do. Usually, they will have you submit a packet of information so they can determine if you are a candidate for assistance or a loan modification of some kind.
Whatever you do, do not do something because you heard a rumor or saw an infomercial on TV. Simply be direct and honest with your lenders and you will have a much better opportunity at something good happening for you.
If you would like to sell your home or if you need assistance getting an estimated value for your home to put on the forms, don’t hesitate to contact one of the great agents or brokers at Tiered Real Estate (866-904-TIERED).