Click here for assistance facilitating a Short Sale or Foreclosure 

We Short Sale in San Diego County

Short Sale La Jolla Short Sale Santee Short Sale Imperial Beach Short Sale Lakeside Short Sale Poway Short Sale Del Mar Short Sale Jamul Short Sale Rancho Santa Fe Short Sale Solana Beach Short Sale Cardiff By The Sea Short Sale Alpine Short Sale Encinitas Short Sale Escondido Short Sale Dulzura Short Sale Carlsbad Short Sale Ramona Short Sale San Marcos Short Sale Tecate Short Sale Vista Short Sale Descanso Short Sale Potrero Short Sale Oceanside Short Sale Guatay Short Sale Camp Pendleton Short Sale Valley Center

HAFA

February 28, 2010 By

From David Streitfeld at the NY Times: U.S. Housing Aid Winds Down, and Cities Worry

Streitfeld discusses the Fed’s MBS purchase program (95% complete and scheduled to end next month), the housing tax credit (contracts must be signed by the end of April, and deals closed by the end of June), and the slight tightening of FHA requirements.

Here is a list compiled in December of many Government housing support programs. Some have already ended (like the extension of the HAMP trial mods on Jan 31, 2010), and, as Streitfeld noted, others will end over the next few months.

One program that is being ramped up is Home Affordable Foreclosure Alternatives (HAFA: short sales and deed-in-lieu) that starts on April 5, 2010.

A few stories of interest …

  • Press Release: Citi to Pilot Foreclosure Alternatives Program to Help Distressed Borrowers

    In exchange for the deed on their property, CitiMortgage will allow borrowers to stay in their homes for a period of up to six months. At the end of the six months, the borrower will turn over the property deed to CitiMortgage, and CitiMortgage will provide a minimum of $1,000 in relocation assistance to the borrowers. Citi will also provide relocation counseling by trained professionals and will cover certain monthly property expenses if Citi determines that the borrower can no longer afford them. Payment of utilities costs will be the responsibility of the borrower. Other costs incurred by the borrower, such as homeowner’s association and escrow fees, will be determined on a case-by-case basis considering the borrower’s specific financial circumstances. As part of the agreement, borrowers must maintain the property in its current condition and agree to bi-monthly meetings during which trained relocation professionals will help the borrower prepare for the next chapter of their lives.

    This is a pilot program, but this is part of the short sale / deed-in-lieu movement that will be a huge story this year. This is being driven by the Treasury’s HAFA program – and this is why I think foreclosures will be down in 2010, but total distressed sales up. Although Citi doesn’t mention it, HAFA requires a full release of the debt and waiver of all claims against the borrower.

  • The TARP Congressional Oversight Panel put out a report today on Commercial Real Estate (CRE): Commercial Real Estate Losses and the Risk to Financial Stability. This isn’t anything new, but it provides a good overview of the CRE issues.
  • On Greece. As expected there was a political announcement of support today, but few details. From the NY Times: Europe Commits to Action on Greek Debt

    European leaders … promised “determined and coordinated action” to safeguard the euro as they sought to persuade jittery bond market investors that Greece would not be allowed to default on its government debt.
    …
    Further work by finance ministers on assistance for Greece, and the conditions that would be attached to any aid, will take place early next week.

    • Filed Under: Uncategorized Tagged With: , , , , , , , , , , , , , , , , , , ,