HAFA, the Home Affordable Foreclosure Alternatives will start in April. This new effort is a response to the limited successes of the HAMP program otherwise known as the Home Affordable Modification Program.

"The administration wouldn't want to categorize it this way, but HAFA is an acknowledgement that a lot of loans won't meet the criteria for a HAMP modification -- even a trial one," said Rick Sharga, senior vice president at RealtyTrac, which compiles data on foreclosures.

According to RealtyTrac, foreclosure filings are expected to hit up to 3.5 million homes in 2010. There were a record 2.8 million homes with at least one foreclosure filing in 2009, the firm recently reported. Foreclosure activity will likely remain high until at least the end of 2012.

"HAMP hasn't worked," Nancy Bush, president of bank industry research firm NAB Research, said. "It's just a massive expense of time and money".  In a recent meeting with Wells Fargo, Bush noted that Wells Fargo has 15,000 people working on HAMP.  She asked executives at Wells Fargo when they thought the program may end. 

"They just shrugged their shoulders and said maybe never," Bush said. "The expense of that is huge. HAMP may turn out to be the most expensive thing the banking industry has ever done."

The HAFA Program

Under the HAFA program, if a homeowner doesn't qualify for the HAMP modification program, they must be offered a short sale.  Homeowners can also be offered a deed-in-lieu of foreclosure.  Borrowers will receive $1500.00 to help them move to a new home.

If you would like more detailed information on this program and how it can benefit you as a buyer or homeowner, please visit this area of our blogsite.

Remember, first-time home buyers purchasing a new or existing home are eligible for the tax credit. The guidelines of the tax credit specify that the home purchase must occur on or after January 1, 2009 and on or before April 30, 2010. The law also states that a closing (transfer of title to the property) occurning by June 30.2010 can qualify provided that there is a binding sales contract in force by April 30, 2010.

What does that mean to you as a buyer? Act now! There are many homes on the market. Many of them are foreclosures and short sale opportunities. Negotiation for foreclosures and short sales can take many weeks to finalize as they are subject to multiple levels of approval. We list foreclosures and short sales and can help you find a great home before the April 30th deadline.

Remember, home purchases in 2010 may be claimed on 2009 taxes or amended 2009 income tax returns. Don't miss out on your $8,000.00! There are distressed sellers, homes for auctions and foreclosures waiting for your purchase!

New Buyer Seminar on Foreclosures, Short Sales, Auctions and NC Downpayment Assistance programs!  Click to talk with an online sales agent for more information.

According to DailyFinance.com, about 5.1 million mortgage holders will own a home that is worth 75% or less than what they owe on the home. A new study drawn by First American CoreLogic then given exclusively to the New York Times states that it would take $745 billion dollars to get mortgages to the point where no home loans in the United States were underwater. Ironically, that is somewhere around the amount that the banks received for their bailout???

RealtyTrac has recently estimated that there will be a rise from last year's foreclosure rate. They are estimated roughly 3 million homes will go into foreclosure in 2010. We are still waiting for the federal government for a long-term solution. Adding more money to this problem may not be an option since the federal budget deficit this fiscal year is projected to be nearly $1.6 trillion.

We will continue to see a sharp increase in short sales and foreclosures in Mecklenburg and the surrounding counties. As a Certified Distressed Property Professional, I am able to assist buyers and sellers navigate through the ups and downs of our housing market with less stress, more ease while keeping more money in your pocket. Call me today, Sandra Allen at (704) 559-5988 X5 for more information on buying short sales and foreclosures or if you are an owner of a distressed property.

Faced with criticism, the Treasury department outlined new guidelines to help streamline the loan modification process under the adminstration's Home Affordable Modification Program that started over a year ago.  The previous paperwork required an overwhelming amount of forms to include 2 year's tax returns, paystubs, hardship letters, etc.. The new guideline specifies that borrowers provide three items to loan services; a form requesting a loan modification, authorization for the servicer t seek tax returns from the IRS an evidence of income.

As of December 31, roughly 900,000 borrowers had been given trial modifications, but only 66,465 had been converted to a permanent loan modification.  As of September 30th, about 7.5 million households were behind on payments or in the process of foreclosure.

If you are a buyer looking for short sale properties in need of immediate or if you are a seller in need of avoiding foreclosure by short sale or if you are in need of loan modification information, please click here.

Some lenders are forgoing the foreclosure process for new home builders facing foreclosure.  Instead they are opting to place these properties into receivership.  By placing these properties into receivership, lenders prevent having to absorb the cost of utilities, finishing construction of the unsold homes, preparing the homes for sale and the liability associated with the new unsold homes.  Court-appointed receivers protect the asset for the lender by maintaining the property.  Newport Beach, Calif.-based California Real Estate Receiverships has been assigned the assets of several banks, including nearly 1,100 lots and homes that Bank of America retrieved from WL Homes. 

What do receivers do?  Receivers work for the judge.  Their main responsibility is to complete the house and deliver it back to the bank free and clear of liens or warranty obligations.  Some production homes when placed in receivership have few construction defects associated with the property.  They may have an expired permit and may be in need of re-inspection. 

There are new homes within the Charlotte and surrounding areas that are in receivership that need to be sold.  For a list of these homes, please click here for more information.