Sonoma County distressed Home Sellers this could be your salvation! Tried a modification and it is JUST not working for you? Go to this LINK to see our entire radio show file and look for the one labeled “HAFA”. This program could be a real “game changer”!! The previous programs just didn’t work for high end or big bubble zones like California. The biggest issue being the 125% max amount of “market value” for the distressed home. Say you had a “market value” of $300,000-125% would have been $375,000. However, you paid $650,000 for the property back in 2005! And you only put 20% down or $130,000. The old program wouldn’t work for you exceed the max amount for the loan modification ( $650,000-$130,000 = $520,000 – 125% of market value or $375000 and you where still short $145,000!! NOW the new MAX is $729,000!! This price takes in 70% of ALL of Sonoma County’s “Actives” now on the market!
However, this bill does not take effect until April 5, 2010–Here are some quick details. This is courtesy of the CDPE folks of which I am a member and designee (*Certfied Distressed Property Expert).
• Pertains to 1st Lien Non-GSE Mortgages
• Utilizes borrower’s financial information through HAMP (Home Affordable Modification Program)
• Financial incentives provided to borrowers,servicers and investors
• Sets limits on lender response time
• Lender forfeits ability to pursue deficiency judgment
• Caps claims of subordinate lenders
Loan is eligible if all of the following conditions
are met:
• Property is borrower’s principal residence
• Loan is a 1st lien mortgage Originated before Jan 1, 2009
• Mortgage is delinquent or default is reasonably foreseeable
• Current unpaid balance is equal to or less than $729,750
• Borrower’s total monthly mortgage payment exceeds 31% of borrower’s gross income
More to come later!
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