Another foreclosure avoidance plan is in the works by the Dept of the Treasury. Details are expected to be released next week. From the rumors I've read so far this one actually might help.
This is the report from Housingwire.
The United States Department of the Treasury is launching, with an official announcement expected next week, a new program to help ailing borrowers escape foreclosure.
The Chief of the Homeowner Preservation Office at the Treasury, Laurie Maggiano, released information on the Home Affordable Foreclosure Alternatives (HAFA) while speaking at the MBA’s 96th Annual Convention going on in San Diego. The official launch is expected in the next week or so.
HAFA already holds the support of Fannie, according to a VP at the agency, Eric Schuppenhauer, who believes the new program allows borrowers in imminent default to “make a graceful exit” from their home. HAFA will keep the stigma associated with foreclosure away from the borrowers, he added, and help keep communities intact.
Maggiano adds that HAFA will offer financial incentives to both servicers and borrowers, and associated secondary investors, in order to facilitate a short sale or deed in lieu of the property.
Borrowers will need to be Home Affordable Modification Program (HAMP) eligible and Maggiano released some stats for the crowd’s consumption. 2,484,783 homeowners have requested information on HAMP. 757,955 HAMP plans were offered. 487,081 trials are underway.
Other additional incentives to the short sale industry are nearly developed. The IRS will soon offer a 4506EZ form that will enable servicers to pre-fill out the information so that it only requires a borrower’s signature. It also will include softer language so as not put potential participants off.
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5 comments:
WTF?! You've got to be kidding! We're going to let the scum get off scott free without even a hit to their credit so that they can turn right around and scoop up property (after having the convenience of probably living rent free while they haven't paid their mortgage for the past year)?!
This is un-fucking believable! Not only have they enjoyed the luxury of living in homes that they cannot afford for the past decade while the responsible have been kept on the sidelines renting, now they're going to get away with it?! I swear this country has become a state of casino socialism.
Oh, they don't avoid a credit hit. A short sale still dings your credit, just not as badly as a FC.
I'm sure we would all like to see those that did buy way more than they could really afford suffer a bit. Or those that used the house as an ATM machine, but now there is a whole new breed of screwed homeowners. These are the ones that are out of work now. many of them may have been able to afford their homes had they remained employed.
Anything that will get these homes into the hands of people that can afford them is a good thing. The quicker we get these homes turned over the better it will be for all of us.
Those that are unemployed wouldn't qualify for this program anyway, GolferX. It says in order to qualify for this program, you would've have to met the same qualifying requirements for the HAMP. Having "no job" doesn't qualify you for any programs if you can't pay your mortgage. I feel bad for the unemployed, I really do but I've always been the type of person to count my blessings and over-appreciate if I know my job position and|or salary are part of a bubble. As a matter of fact, a bit TOO much, I had thought it was overpaid and on shaky ground even way back in the LAST bubble. I guess my extra caution is what brought me down and prevented me from buying a house all this time. I'd be nice to know that my caution had finally paid off (which it should've by now had not for government handouts to the irresponsible).
I think I'm at the point where I no longer get angry about this. Just leave me be and let the rents keep dropping. I'll continue to move and/or renegotiate until this crap is all over and buying a house finally makes sense again (somewhere in 2024 by the current pace of things).
It was expected as people suffered a lot from these unstoppable foreclosures. In addition there was a lot of pressure on Federal government to do something in this regard.
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