Recent Blog Posts

HAFA Changes Expected To Increase Short Sale Approvals

Elizabeth Ermel — Fri, 11 Mar 2011 17:25:00 GMT

As of February 1, 2011, the HAFA program (Home Affordable Foreclosure Alternatives) has revamped homeowner eligibility requirements which is expected to have the result of greatly increased numbers of short sale approvals. AMS Servicing, LLC stated in an interview with HousingWire, that they expect short sales to increase 50% in 2011. AMS also stated that due to the fact that HAFA has loosened up its eligibility criteria, that as many as 91% of previously ineligible borrowers may now be eligible to do HAFA short sales.

As of the recent HAFA directive which went into effect on February 1, 2011, HAFA does not ask for income verification unless the borrower is less than 60 days overdue on the mortgage.

What are the benefits of doing a HAFA short sale versus a traditional short sale? First, the borrower will receive a deficiency waiver; second, the borrower will receive up to $3,000 in relocation funds; and the borrower does not have to wait until he/she has an executed contract in order to do the HAFA short sale. Borrowers can apply to do the HAFA short sale prior to even listing the property for sale or obtaining an executed contract. In some instances, borrowers have been able to obtain a pre-approved short sale list price so that they are able to more efficiently market the property to prospective buyers and get the short sale closed in much less time.

For more information about the HAFA program, visit http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/default.aspx

and Housingwire article http://www.housingwire.com/2011/02/23/short-sales-to-ramp-up-with-hafa-changes

HSBC Freezes Foreclosure Litigation

Elizabeth Ermel — Thu, 03 Mar 2011 20:39:00 GMT

On February 28, 2011, HSBC Holdings PLS announced it will join a list of lenders who has frozen foreclosure litigation. The release came about in the company's K-1 filing of its Annual Report. HSBC has litigated and repossessed or sold approximately 220 properties in Palm Beach County since 2006. The company claims that robo-signing of affidavits was not the problem, but found "deficiencies in document preparation", according to HSBC spokesperson Neil Brazil. Brazil also stated that the files being reviewed are those prior to entry of final judgment of foreclosure, and the bank's intention is to correct and re-file documents where necessary.

The Palm Beach Post cites seventy five percent of HSBC foreclosures that went to auction were litigated by three law fims currently under FL Attorney General Office investigation, including Law Offices of David J. Stern, Law Offices of Marshall C. Watson and Florida Default Law Group. The suspension of foreclosure litigation is indefinite and there has been no forecast as to the length of time HSBC intends to take in order to correct and re-file documents. To read the full article, click http://www.palmbeachpost.com/money/foreclosures/london-based-hsbc-freezes-its-foreclosures-1290694.html

Obama's HAMP Makes Minimal Dent in Helping Struggling Homeowners

Elizabeth Ermel — Tue, 01 Mar 2011 17:00:00 GMT

In its February 28, 2011 issue, The Wall Street Journal highlighted the failure of the Obama Administration's Making Home Affordable Program (HAMP) in helping struggling homeowners with loan modifications. Citing dismal statistics of successful modifications, 1 in 4 of the 2.7 million applicants who submitted application to HAMP were successful in having their monthly mortgage payments reduced. The remaining 75% of applicants either did not qualify or were disqualified from the program after having been initially accepted.

HAMP's objective at the outset was to use taxpayer dollars, forecasted to be $75 billion, to combat the rising number of foreclosures by assisting homeowners to stay in their homes through reduction of interest rates on loans and extending loan terms. The results have been disappointing to say the least. The Wall Street Journal quotes Neil Barofsky, the former Special Inspector General who oversaw the program, who faults the administration for its inadequate analysis and partially developed guidelines. The program "continues to fall short of any meaningful standard of success," Barofsky stated in a January 2011 released report. Instead of President Obama's projection that $75 billion of taxpayer money was necessary for HAMP, the government spent $1 billion thus far. Others blame HAMP's failure on the strict qualification criteria, which immediately eliminates a large percentage of homeowner applicants.

Moreover, an army of strong critics of HAMP are found amongst House Republicans. Republicans, in their efforts to make sustantial cuts across the board and exercise fiscal discipline, have been outspoken against HAMP and are determined to throw the program on the chopping block. Republican Congressman Spencer Bachus (R., Ala.) said, "in an era of record-breaking deficits, it's time to pull the plug on these programs that are actually doing more harm than good for struggling homeowners."

It remains to be seen what course the federal government decides to take, since the Administration and Congress are completely at odds as to how to address the number of U.S. foreclosures, which are only projected to get worse through 2011. Unfortunately distressed homeowners and the housing market will continue to wait and suffer the consequences of perpetual government gridlock.

To read the WSJ full article, visit http://online.wsj.com/article/SB10001424052748704692904576166982594828812.html

Welcome to our West Palm Beach Foreclosure Defense Blog

Foreclosure Defense Attorney — Tue, 23 Nov 2010 17:33:00 GMT

We are pleased to announce the launch of our West Palm Beach Foreclosure Defense Blog.