Skip to main content
Our Blog
Tuesday, June 19 2012

The Department of Justice bails out underwater homeowners

Both the Department of Justice (DOJ) and the state attorneys general came up with a mortgage loan relief plan in consultation with the country’s most prominent mortgage lender, Bank of America (BOA). Under this plan, the federal government pledges all the necessary help and support to the bailout initiatives of BOA that are floated to assist struggling mortgage borrowers. This plan will increase the mortgage loan repayment term for all the eligible borrowers.


Global mortgage settlement plan – Some basic points


Here is a summarized version of the settlement terms:


1.      Loan modification – As per the settlement agreement, BOA will execute fresh loan modification program that will reduce the principal amount for eligible borrowers.


2.      Interest rate reduction – Eligible borrowers will get their interest rate reduced on the loans issued (owned) by BOA. However, borrowers should have made regular monthly payments and their mortgage loan must be underwater.


3.      Short sale/foreclosure assistance – BOA is willing to help those borrowers who have opted to short sale their property. It has created several assistance programs to do so. For instance, it will help a borrower to get a deed in lieu of foreclosure. Moreover, it is the in the sole discretion of BOA to give any kind of financial help to any eligible borrower.


The effect of settlement plan on the short sale agents


Under the mortgage settlement program, borrowers who are already going through the short sale process may become eligible for it. The DOJ will analyze the eligibility of those borrowers before enrolling them in the loan modification program. If a borrower obtains the approval of the DOJ, then he will have to decide whether or not he wants continue with short sale process or go for the loan modification.


Once a borrower accepts the settlement program, then the short sale of the property will be considered null and void. However, one has to weigh all the pros and cons of his decision to opt for the loan modification program. Moreover, some legal issues may arise due to cancellation of the short sale process after entering into a legal agreement with a prospective buyer. These borrowers will have to consult with the BOA and his real estate attorney before making the final decision. Furthermore, a borrower may or may not get the approval from the DOJ either for the short sale or loan modification program.


Essential facts about Deed in Lieu and Short sale


Here are certain facts that an underwater mortgage borrower should know:


        i.            Property owners must get legal advice from legitimate attorneys and financial advisors regarding all the legalities associated with the termination of the short sale agreement with a buyer.

      ii.            Property owners are liable to get a cheaper residential space, as per the mortgage settlement terms.

    iii.            In case a borrower willfully terminates the short sale or the deed in lieu, he will become ineligible for the settlement program.


Essential facts about DOJ’s loan modification program


Here are some facts about the mortgage loan modification program:


        i.            On getting the required approval, property owners can increase their home’s equity value.


      ii.            Property owners can continue to stay in their home with a reduced monthly mortgage repayment amount.


    iii.            Property owners whose home equity appreciation request was cancelled can apply in a fresh application at a later date or opt to short sale his property. However, it should be noted that foreclosure may start all over again. (Foreclosure procedure is subjected to the rules applicable in the property owner’s state and the mortgage lender’s terms)

For additional information, please contact the Aaronson Group with at 949-388-5194 or
Posted by: Gabriel Knight AT 05:51 pm   |  Permalink   |  Email
Monday, June 18 2012
Owning a home is the dream of every American and almost every person in general. However, under the existing market conditions, things aren’t really that easy. Even if you take a mortgage, making the payments might be a tad difficult. If you’ve already taken a mortgage and struggling to make your payments, you can go for mortgage refinance. You can refinance your mortgage loan in order to make the most of lower interest rates. However, if you default on your mortgage payments and are unable to retain your home, you may negotiate with the bank to trade your assets for less than the mortgage amount and stop foreclosure. This is known as short sale. However, this only happens if it makes financial sense to the bank, and is common in situations when the property holder is in default on his payments.
HAFA Orange County Short Sale Program
In the year 2009, the US Treasury Department declared the HAFA Orange County Short Sale program to include a more feasible choice for property owners who are unable to afford their existing mortgage or who aren’t able to retain their homes via the current HAMP or Home Affordable Modification Program. The HAFA Orange County short sale program came into effect on April 5, 2010 and is expected to expire on December 31, 2012. Nevertheless, the US Treasury Department has thought of extending the HAFA Orange County short sale program till December 31, 2013.
HAFA Orange County Short Sale program: How can it be beneficial to you?
If you’re in need of a short sale and become eligible for the HAFA Orange County Short Sale program, it could prove very beneficial for you. It allows the trader to obtain up to $3,000 for incurred moving costs at the conclusion of the short sale. This program offers incentives with regard to an Orange County short sale or an Orange County DIL or deed-in-lieu of foreclosure, used to stop foreclosure on a loan entitled for alteration under the HAMP program. People taking part in the Orange County HAMP program are necessitated to adhere to the rules and conventions of the HAFA Orange County program.
HAFA Orange County: Should you contact them directly?
HAFA Orange County doesn’t function directly with property owners or sellers. You need to have your property listed for trade. Experts at the HAFA Orange County short sale program make sure that all those who qualify, experience the HAFA Orange County Short Sale benefits. This program is devised to simplify the short sale procedure and provides fiscal incentives to both mortgage banks and home proprietors so as to support this kind of resolution against foreclosure.
HAFA Orange County short sale: Who qualifies for the program?
The HAFA Orange County Short Sale program is accessible only for owner held properties. Moreover, the due amount owed to the bank must not exceed $729,750. Lastly, if you have more than one lender, all lenders must agree to take part in the program. The lenders hold the right to refuse involvement in the program on any file. Currently, the HAFA Orange County short sale program is all set to expire on Dec. 2012.
HAFA Orange County Short Sale program: A general idea
·         Launched on April 5, 2010
·         Earliest Lien Mortgages or Non-GSE Mortgages
·         Economic incentives provided to borrowers and investors
·         Fixes limits on loaner response time
·         Loaner loses ability to follow deficiency judgment
·         Restricts demands of subsidiary lenders
For additional information, please contact the Aaronson Group with at 949-388-5194 or
Posted by: Gabriel Knight AT 10:09 am   |  Permalink   |  Email

Upside Down?
Struggling With Payments?

Loan Modification Unsuccessful? Facing Foreclosure?

Contact Us Today To Learn If A Short Sale Is Right For You And Your Family!


A + Rating



Get a FREE No Obligation Short Sale Pre-Qualification

All communication will be strictly confidential

Your Property Information
* indicates a required field
Please fill this field.

Orange County Short Sale Agents and Realtors offering assistance in the following areas:

San Clemente, Talega, San Juan Capistrano, Dana Point, Capistrano Beach, Laguna Beach, Newport Beach, Newport Coast, Corona Del Mar, Huntington Beach, Fountain Valley, Costa Mesa, Orange, Irvine, Tustin, Foothill Ranch, Lake Forest, Portola Hills, Laguna Hills, Laguna Niguel, Aliso Viejo, Mission Viejo, Ladera Ranch, Rancho Santa Margarita, Foothill Ranch, Coto De Caza, Dove Canyon, Trabuco Canyon & Las Flores

Privacy Policy: Your information will never be shared with any third party and will only be used in discussing your situation and how we can offer assistance with your mortgage relief options. At anytime, you can request to edit or remove your personal information and opt out of any future correspondence by sending an email to

Helping Stabilize Property Values One Homeowner At A Time

Orange County short sale realtors offering homeowners expert short sale information and short sale assistance with a San Clemente short sale, Talega short sale, San Juan Capistrano short sale, Dana Point short sale, Capistrano Beach short sale, Laguna Beach short sale, Newport Beach short sale, Newport Coast short sale, Corona Del Mar short sale, Huntington Beach short sale, Fountain Valley short sale, Costa Mesa short sale, Orange short sale, Irvine short sale, Tustin short sale, Foothill Ranch short sale, Lake Forest short sale, Laguna Hills short sale, Laguna Niguel short sale, Aliso Viejo short sale, Mission Viejo short sale, Ladera Ranch short sale, Rancho Santa Margarita short sale, Foothill Ranch short sale, Portola Hills short sale, Coto De Caza short sale, Dove Canyon short sale, Trabuco Canyon short sale & Las Flores short sale

Copyright© 2009 - The Aaronson Group, All Rights Reserved. BRE #01259966

Disclaimer: The information provided on this website should not be constituted as legal advice. The content is intended to provide general information about the short sale and foreclosure processes, and should not be acted upon without the counsel of a qualified REALTOR®, attorney, and tax expert.