Only time will tell..well the first part of the Making Home Affordable Short Sale Program was rolled out in April 2010. The HAFA program was initially thought to streamline the Short Sale Process while offering some substantial benefits to the homeowners, namely waiving the deficiency obligation to the homeowners. That benefit will eliminate most of the homeowners exposure and risk associated with completing a short sale….and that is really great news! This program will also give homeowners $3000 at Close of Escrow for Relocation Expenses. To streamline the process, the lien holder will, in advance of an offer, determine the Fair Market Value of the home. This enables the home to be marketed as a Pre-Approved Short Sale–shortening this lengthy process.
But…what is the catch, you ask. Well the program has very defined terms and conditions that Realtors and Borrowers must follow. Once a Value is determined, the bank will hold you to that number NO MATTER WHAT HAPPENS IN THE REAL ESTATE MARKET! They will also give you a FINAL NET AMOUNT, that the bank MUST receive.
Well at the end of the day while waiting for a buyer and a buyer who will stick it out, the market changes, the closing costs increase, taxes become due and the net to the bank changes. It then becomes almost impossible to give the bank the numbers they need to close. They will not deviate one cent from that number and someone is going to be forced to pay the difference.
At the end of the day, I am finding that this program is, like any other government program, bogged down in inefficiencies and paperwork. These transactions require some level of flexibility but the HAFA program does not afford us that. Is it really helping? No matter how many Gold Nuggets are dangled in front of a homeowner, if the Short Sale does not close, is it really a valuable program. The government and the banks are more concerned with making sure the paperwork is perfect, and the pennies add up and NOT concerned with actually helping the homeowners or working with the Realtors. I am in the trenches with this one…I will let you know how it plays out in the end.
PLEASE Share with me Your Personal Experiences.
Elise Fay, Realtor
Similar Posts:
- HUD Homes in Casa Grande, Arizona
- You can find Chicago homes for sale online, so why use a Realtor?
- Dallas Real Estate – Low Ball Offers
- Safety and Privacy During a Plano Home Showing
- Government Renews Efforts to Save Homeowners
