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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
Wednesday, December 29 2010

Important news for homeowners in the process or contemplating a short sale.....The California Legislature has approved Senate Bill 931 (SB 931) which added Section 580e to the Code of Civil Procedure and goes into effect on January 1, 2011.

The new law states that "No judgement shall be rendered for any deficiency under a note secured by a first deed of trust or first mortgage for a dwelling of not more that four units, in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage."

Section 580(e) protects homeowners as well as investors, as it is not limited to consumer transactions, nor limited to homeowner occupied dwellings.

This new law is great news for most borrowers and sellers of real property involved in a short sale. The new California law provides that when the seller of a one to four unit residential property sells the property at a short sale, the first trust deed holder who consents in writing to the short sale cannot seek a deficiency judgment.

A few noteworthy exceptions: If the trustor or mortgagor commits either fraud with respect to the sale of, or waste with respect to, the real property that secures the first deed of trust or first mortgage, this section shall not limit the ability of the holder of the first deed of trust or first mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any third party for fraud or waste.

A mortgage deficiency is the difference between the loan amount owed by the borrower and the purchase price of the short sale paid to the lender. In some states and some instances homeowners are protected and lenders can't pursue them for the deficiency. However, in some cases a short sale can leave you owing a substantial debt, which can be collected by garnishing your wages or other aggressive collection actions. 

For short sale information and assistance

Posted by: Kevin Aaronson AT 04:08 pm   |  Permalink   |  Email
Wednesday, July 14 2010

Seven-Year Lockout Policy for Strategic Defaulters

WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. Defaulting borrowers who walk-away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure. Borrowers who have extenuating circumstances may be eligible for new loan in a shorter timeframe.

"We're taking these steps to highlight the importance of working with your servicer," said Terence Edwards, executive vice president for credit portfolio management. "Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting. On the flip side, borrowers facing hardship who make a good faith effort to resolve their situation with their servicer will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time."

Fannie Mae will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments.

Troubled borrowers who work with their servicers, and provide information to help the servicer assess their situation, can be considered for foreclosure alternatives, such as a loan modification, a short sale, or a deed-in-lieu of foreclosure. A borrower with extenuating circumstances who works out one of these options with their servicer could be eligible for a new mortgage loan in three years and in as little as two years depending on the circumstances. These policy changes were announced in April, in Fannie Mae's Selling Guide Announcement SEL-2010-05.

Posted by: Kevin Aaronson AT 12:44 pm   |  Permalink   |  Email
Thursday, November 19 2009
Kevin Aaronson of Keller Williams Realty,’s founder, has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
In the Orange County area, numerous homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said Aaronson. “It is so rewarding to be able to help sellers save their homes from foreclosure. Being an Orange County short sale realtor has given me the opportunity to help alleviate the stress home owners often face during this difficult time." 

If you would like information on what options are available to you, please give us a call at 949-388-5194 or email at
Posted by: AT 10:04 pm   |  Permalink   |  Email
Tuesday, January 27 2009

This article was recently posted in a national real estate publication.

RISMEDIA, January 27, 2009-The national foreclosure moratorium imposed by Fannie Mae and Freddie Mac, major banks such as Citibank and Bank of America, and a host of state governments has created a "breather" for homeowners in default. By working with loan servicers, some homeowners will be able to modify their loan terms and stay in their homes. But many won't.

Not all borrowers will qualify for modified loans. Lenders are keenly aware of this, as well as the fact that foreclosing on a home is an expensive proposition: It can cost a bank $30,000 to $50,000 to foreclose on a home, plus carrying costs that equate to 1.0% to 1.25% of the value of each home per month. There is little enthusiasm for increasing bank-owned (REO) inventory in markets already saturated with foreclosed homes and falling prices.

As an alternative, lenders have new enthusiasm to ramp up the volume of short sales.

Short sales, as most know, are when the lender allows a distressed property to be sold at a price lower than the homeowner's mortgage indebtedness, with the difference forgiven. This relieves the homeowner of their ownership and debt burden without marring their credit report the way a foreclosure would. It also typically allows the new purchaser to buy into the neighborhood at a substantial discount . much more in line with the property's true, current market value. In other words, short sales facilitate efficient clearing of the market.

Historically, short sales have not been very appealing to lenders. The short sale is a complex process that requires an agreement by all the lien holders to accept the lesser amount owed by the original borrower. The paperwork and number of players involved in short-sale transactions can easily overburden a servicer who is already dealing with hundreds of thousands of loan modifications, REO dispositions, etc.

But now with over four million new loans in default in this cycle and six million more expected in early 2009 due to coming interest-rate resets, lenders such as Citibank, Bank of America and Wells Fargo are fired up for short sales.

As they see it, if just 25% of current loans in default could be sold through short sales it would stave off one million foreclosures (good for homeowners) and replace one million nonperforming borrowers with one million performing borrowers (good for lenders).

The industry's challenge to accomplish this is two-fold: Evaluating their portfolios to determine which homes are well suited for short sales, and processing the high volume of bulk sales.

So lenders are now assessing a distressed borrower's situation early in the loan modification process, calculating the sensibility of modifying the loan versus offering the property in a short sale or letting it likely roll into foreclosure. In cases where short sales are the best route, lenders are proactively assigning loans in bulk to be put through the short-sale process. (This phenomenon is strangely new to homeowners; in the past it was incumbent on them and their agents to initiate the short-sale process, not the other way around).

The second part of the challenge is how to process the actual sales, considering legacy technology solutions weren't built to handle either the volume or the complexity of today's short-sale transactions.

DepotPoint's TrackPoint, with a new short-sale module, is up to the task. TrackPoint is an online workflow platform that operates in a SaaS environment. The short-sale module can scale an outsourcer's or an asset manager's operation quickly to handle massive amounts of short-sale volume, reducing costs and elapsed time to complete transactions.

Already using TrackPoint featuring the new short-sale module is MMREM, Matt Martin Real Estate Management, which has facilitated more than 10,000 short sales as the nation's largest facilitator of short sales.

"Short sales are often complex, time-consuming transactions," said Matt Martin, President and CEO of MMREM. "In today's high-volume environment, managing them can be even more cumbersome than usual. REO TrackPoint featuring the new short-sale module simplifies and streamlines the process. It's the most comprehensive, efficient national online platform we've seen for managing and processing default properties."

MMREM has increased its short salle through-put by more than 300% by using TrackPoint with the short-sale module.

Tom Gordon is Executive Vice President of Business Solutions for DepotPoint, Inc., which brings greater efficiencies and cost savings to mortgage lenders, loan servicers, foreclosure attorneys and REO asset management firms that use the company's Web-based application suite, TrackPoint, to vertically process properties through foreclosure straight into REO management.

By Tom Gordon


Posted by: Short Sale Real Estate Expert AT 04:50 pm   |  Permalink   |  0 Comments  |  Email

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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.