membership outreach hafa class

w w w . M a r k i L e m o n s . c o m

Chicago Association of REALTORS®

Home Affordable Foreclosure Alternative

Focused on Real Estate!

Marki LemonsSpeaker@Marki_Lemonshttp://www.linkedin.com/in/markilemons

#CARMO

http://www.linkedin.com/in/markilemons



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S I M P L I F Y I N G T H E D I F F I C U L T

3 www.adprnetwork.com

10/13

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Alarming Statistics

The rate of foreclosure remains high.

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What is a Short Sale?

A short sale occurs when a lender is willing to accept less than the full

mortgage pay off.

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HAFA

Short Sale

Home Affordable

Foreclosure Alternatives2-3

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No occupancy requirement for HAFA eligibility

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Payment on 1st Lien Does Not Have To Exceeds 31% of Gross Income

• Includes:– PITI – Flood Ins., Condo Assn Fees & HOA

Fees• Does not include:

– Mortgage Insurance– Sub. lien payments

Gross Income: Includes All Income

2-27

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SELLER ADVANTAGES

• $3,000 cash to seller• Foreclosure suspension• Liability release• No notes or $$$ contributed• More $$$ for 2nd liens up to $8,500• Pre-approved short sale• Deed-in-lieu possible with $3,000

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Credit

The requirements in Section 11.2, Chapter IV of the Handbook related to credit bureau reporting of HAFA transactions are amended as follows:

If the real estate is sold for less than the full balance owed and the deficiency balance is forgiven, report the following Base Segment fields as specified:

Account Status Code = 13 (Paid or closed account/zero balance) or 65 (Account paid in full/a foreclosure was started), as applicable.

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FHA 2 yrs BK 3 yrs Foreclosure 3.5% Down FHA-580 Minimum Lenders 620

Minimum

Fannie Mae/Freddie Mac

4 yrs BK 2 yrs Short Sale 4 yrs Deed-in-Lieu 5 yrs Foreclosure 10% Down 680 FICO Investor=7yrs

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ADVANTAGES FOR REAL ESTATE PROS

• Standard forms• No $$$ contribution• No last minute

commission negotiations• Quicker approval or denial• Listing remarks

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HAFA ELIGIBILITY

1-4 family $729,750 balance (SFR) 1st position loans Originated on or before 1-1-09 Payment on 1st loan does not have to exceed

31% of gross income Hardship Delinquent or default reasonably

foreseeable

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HAFA FEATURES

Pre-approved short saleSpecified time linesCommissions protectedFull release of liability on 1st and

subordinate loansForeclosure sale suspension

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HAFA FEATURES (CONT’D.)

Payment forbearance or reduction$3,000 to Seller Servicer incentivesUp to $8,500 for subordinate lien

holders Investor reimbursement for

subordinate lien releases

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WHO’S PARTICIPATING

All servicers in HAMP1st mortgagesServicers establish policies based

on investor guidelinesInvestors in non-GSE loans may

not approve HAFA short sales

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WHO’S PARTICIPATING

Fannie & FreddieAre the investorsEstablish separate guidelines

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FORECLOSURE SUSPENSION

Potentially eligible borrowers must be considered for HAFA: Prior to commencing

foreclosure Before foreclosure sale is

conducted

For non-GSE loans: Pursuant to servicer’s policy

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BORROWER ALREADY IN HAMP

Servicer Must Consider Borrower for HAFA… Within 30 days from date the borrower:– Does not qualify for trial

modification– Does not complete trial

modification– Is delinquent on modification– Requests a Short Sale

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BANKRUPTCY

Considered for HAFA if requested

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Forms

SSARASSAlt. RASSDIL

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NON-OWNER OCCUPIED EXEMPTION:

Vacant up to 90 days prior to:SSA orAlt RASS and

Job transfer or new employment 100 miles or more and

Not purchased another home within previous 90 days

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DEFAULT FORESEEABLE

Imminent default evaluated by servicer based on borrower’s debts,

expenses, income & assets

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MAXIMUM UNPAID BALANCE

1 Unit: $729,750 2 Units: $934,200

3 Units: $1,129,250 4 Units: $1,403,400

Supplemental Directives & Announcements

• Supplemental Directives• US Treasury• 28 Updates

• Announcements• Fannie Mae

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www.makinghomeaffordable.gov

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eFannieMae.com

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www.freddiemac.com

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35 www.adprnetwork.com35

MarkiLemons.com

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NEW! Awesome Video Card

MarkiLemons.com

HAFALANGUAGE

QR Code Call to Action

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A card that converts to video with QR

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Door Hanger-Same Script

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Marki Lemons

Speaker

@Marki_Lemonshttp://www.linkedin.com/in/markilemons

#CARMO

Thank You.


membership outreach hafa class

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