HAFA changes as of April 5, 2010 & How they affect you

HAFA (Home Affordable Foreclosure Alternatives) changes went into effect on April 5, 2010. What's HAFA you may ask? It's an "alternative" program created to help homeowners who may not have qualified for a loan modification under HAMP (Home Affordable Modification Program).

Here's a quick synopsis of standard loan products offered to consumers. As noted on the page to the link for "loan products," Fannie Mae began offering refinance options per the "Making Homes Affordable" program. The goal of this program as announced by President Obama is "to provide access to low-cost refinancing to responsible homeowners suffering from falling home prices." The expectation was that these changes would relieve people of the strain of an interest-only loan or short term ARM, reduce their Principal and Interest payment and place them in a more stable loan product. In short, DON'T do any 5/1 or 7/1 Adjustment Rate Mortgages and avoid interest-only loans altogether. Lenders may not like this advice. Thats OK. By virtue of my nature I simply don't believe in "predatory" practices. "Predatory" practices put my needs 1st and my client's needs last. NO GOOD.

Here's a quick summary of HAFA & Changes from Fannie Mae as of June 1, 2010:

• On June 1, 2010 Fannie Mae released their servicing guide announcement SVC20-10-07: Introduction of Fannie Mae's HAFA program. This guide provides servicer guidance and direction for using the short sale or deed-in-lieu (DIL) process for borrowers who qualified for, but did not complete a loan modification with HAMP. In essence it covers servicers incentives, standard forms to use, and timeframes for completion.

HAFA programs features:

• Uses verified borrower financial & hardship info collected in conjunction with HAMP eliminating the need for additional eligibility analysis.
• Allows borrower to receive pre-approved short sale terms prior to the property listing.
• Prohibits servicer from requiring as a condition of approving the short sale, a reduction in the agreed upon Realtor commission in the listing agreement. Good stuff. 8-)
• Releases the successful HAFA borrower from future liability for the debt. (no deficiency judgments...whoo hoo!!!!)
• Uses standard processes, documents & timeframes. (Yes,saves time & expedites the process).
• Provides financial incentives to borrowers, servicers and subordinate lienholders.

Servicer incentives: $2,200 for short sale. $1,500 for deed-in-lieu (DIL)

Borrower incentives: Short sale of DIL- $3,000 to assist with relocation expenses.

**Pls note, in most cases the borrower will receive funds at closing of the short sale, or within 5 days after the servicer accepts DIL, as long as the home is vacated and in acceptable condition.**

I hope this post answered a few lingering questions you may have had. Don't hesitate to e-mail or call me with additional questions/concerns. While I'm not a Tax Professional, Attorney, or Lender I'll do my best to help with Real Estate related inquiries related to buying & selling homes; thats my specialty. Thanks again for reading my blog & HAPPY HOUSE HUNTING. As always, I'm never too busy for you or your referrals.

Tax Credit Extension and Expansion for 2010

Great news. The First-time Buyers tax credit has been extended and expanded. Read this article for details: http://money.cnn.com/2009/11/06/real_estate/tax_credit_extended/

FYI: A first time buyer is anyone who hasn't owned a home in the last 3 years. Additionally, the new credit was expanded to include current owners, that wish to "trade up." First-timers can qualify for up to $8,000 and existing owners can qualify for up to $6,500. This is a refundable credit that would put money in your pockets.

Let's recap: Is now a good time to buy a home? ABSOLUTELY. Interest rates are at historic lows. Uncle Sam is GIVING money as an incentive to buy. It's a Buyers market, which mean market conditions favor buyers and not sellers. What more could you ask for? Don't answer that. Just call me if you're planning to buy or sell, 443-538-1631. I can help you navigate this market.

Thanks for reading my blog. Happy Holidays & happy househunting. Check the next blog. Peace.

Progress on the Tax Credit Extension

Informative video, huh? The clock is ticking and NAR (National Association of Realtors) and many others in the Real Estate industry are working hard to get an extension of the 1st Time HomeBuyers Tax Credit. Reportedly, this credit bought over 300,000 buyers into the market for a home this year.

Click this link for another article on the credit.
www.realtor.org

The Real Estate industry fuels millions of dollars into the economy in the form of loan revenue, retail sales, and adding work for builders,contractors, plumbers, electricians, loan officers, title companies, furniture salespeople, housing goods sales, and taxes. There's a bigger picture not being represented by this post, but overall you get the idea. As a Realtor I help people find homes and put a roof over their family's head. This brings me great joy.

As the market rebounds from the credit crunch, people will continue seeking a place to stay. Even in a recession, theres a place to call home for everyone. Thanks again for reading my blog. Stay tuned for more information on developments with the credit and other useful real estate news.

Explore Baltimore!

Happy Friday 10/16/09 Bloggers,

Check out the release below: http://www.baltimorecity.gov/news/press/1009/101409%20Citizen%20Survey%20Press%20Release.pdf

Mayor Sheila Dixon and her administration are working on implementing suggestions from the recent survey. Baltimore City is known for its artsy, eclectic mix of "bohemians," historians, old-world charm homes built in the 1900's and beyond. The Maryland Zoo calls the city home, and so does the Baltimore Orioles, Druid Hill Park, John Hopkins University and so much more.

Neighborhoods in the City include: Fells Point, Charles Village, Mondawmin, Ashburton, Tuscany-Canterbury, Guilford, Seton Hill, Park Heights, Central Forest Park, Hanlon Park, Roland Park, Woodmere, Cold Spring, Pimlico and so many other neighborhoods.

Full of museums, parks, restaurants, retailers, shopping, entertainment and so much more, Baltimore City has lots to offer old and new residents alike. Don't take my word for it. See for yourself! I will. Explore all that is Baltimore.

Thanks for reading my blog. Have a Great, Enjoyable weekend.

Sellers Paradise or Sellers Nightmare

Image by Earl - What I Saw 2.0 via Flickr

In today's buyers market, Maryland Real estate is HOTTER than EVER! The First Time Buyers Tax Credit has spurred hundreds, even thousands of Buyers into the market. So, is it a Seller's Paradise or Sellers Nightmare? Visit http://marlenerogers.yourkwagent.com/ for useful tips on selling your home or to help a friend sell their home.



I'd say its a "sellers paradise." I believe this because buyers are flooding the market looking for a home, renters are converting to ownership, and Maryland has SO MUCH TO OFFER,from the Inner Harbor's fine dining to sporting events at 1st Mariners Arena, to the bike paths and open space of Columbia, and the picturesque greenery of Western Howard Co.'s Fulton, Glenelg, and West Friendship areas, as well as the States many attractions: Belair Mansion, Enchanted Forest, Children's Heritage and Welcome Center, Columbia Festival of the Arts, Ft. McHenry, Savage Mill, and so much more.

Whether you're restless and on the go, like me or a hopeless romantic, a cool collective homebody, movie-goer, club hopper, fine dining affectionado or simply enjoy the great outdoors, our home state of Maryland has something for everyone. If you're sold on Maryland after reading this post, imagine how soon we could sell your house. Think about it.



Happy Buying and Selling and Thanks for tuning in to my blog. Stay tuned for this week's "Featured Neighborhood."



Much Love,

Marlene