Jan O'Brien - Real Estate Coach

Fannie/Freddie (GSE) Announce HAFA Guidelines.... finally!

On June 1, 2010 both Government Sponsored Enterprises (GSEs) announced their guidelines for HAFA (Home Affordable Foreclosure Alternatives).  These programs will allow homeowners with GSE loans to pursue a short sale or deed-in-lieu of foreclosure if they are unable to secure a modification under the government’s foreclosure prevention program.

Both programs are almost identical to the Treasury's HAFA program that was effective April 5, 2010 for non-GSE mortgages.  Which makes one wonder..... why the big delay? 

The borrower must first be evaluated and denied for a Making Home Affordable Program (HAMP) workout plan. The GSE HAFA programs take effect Aug. 1, 2010, but servicers are allowed to use HAFA immediately.

After reviewing the guidelines, here are some minor differences from the Treasury HAFA program:

Servicers are eligible for a $2,200 cash incentive for each completed short sale (it is $1,500 for non-GSE HAFA) and $1,500 for each completed deed-in-lieu. 

Freddie Mac Eligibility: 60 days late and have cash reserves less or $5,000 or 3 times their monthly mortgage. Borrowers may be in foreclosure, in pending litigation involving the mortgage, or in active bankruptcy.

In addition, Freddie said it does not require or accept cash contributions or promissory notes from the borrower.

Quick links to GSE HAFA Resources:

• Fannie or Freddie Loan Lookup
  
  
• Fannie Mae HAFA Guidelines (website)
• Download HAFA overview_FannieMae (PDF)
  
  
• Freddie Mac HAFA Guidelines (website)
• Download HAFA_bulletin_FreddieMac (PDF)

For a breakdown and side-by-side comparison of the key points, read Darren Welsh's blog: TGIF Legal Tip: Fannie and Freddie HAFA Programs

CFAC Designation Course (Short Sale Training) in Las Vegas, June 18, 2010

Certified Foreclosure Alternatives Consultant℠

CE..5094000-RE 7 Hrs. General

This course is approved by the Nevada Real Estate Commission

Friday, June 18th 9am-4:30am ~ Lunch included!

iMortgage 9139 W. Russell Rd., #100, LV, NV 89148
(Behind Bank of George in the Desert Canyon Business Park ~ 215 and W. Russell Rd; take Jerry Tarkanian Way to W. Oquendo Rd.)

Once you complete the Certified Foreclosure Alternatives Consultant℠ Designation Course, you’ll be a trained consultant who understands the alternatives to foreclosure with an emphasis on the short sale process. A CFAC℠ encourages clients to partner up with other trusted advisors such as attorneys, CPA’s, and financial consultants. A CFAC℠ educates the client so they can make an informed decision as to what’s in their “best interest.” If the client determines the short sale is their best option, no one is better trained to competently, diligently, compassionately, and successfully process a short sale transaction than a CFAC℠.

Click here for more CFAC COURSE CONTENT INFORMATION

SPECIAL PRICING....

If you’ve already earned the Certified Short Sale Professional (CSP) designation, it’s only $149!

That’s a savings of $80.00 off the regular $229.00 price!  Apply coupon code: CSP149

If you’re a non-CSP join our FREE www.shortsaleprofessionalnetwork.com and pay only $179.00! That’s a savings of $50!  Apply coupon code: SSPN

REGISTER NOW!

The path to pursuing a CFAC℠ certification is straightforward. Complete the qualifying 7 Hr. classroom core course. One day in length. Review the course materials online and pass the CFAC℠ exam. For further information, contact Steven Kitnick at (702) 255-8722.

Cancellation/Refund Policy: There are no refunds. With 48-hour notice, class credit will be issued.

Certified Foreclosure Alternatives Consultant - New Designation Course Debuts to Rave Reviews!

Steve Kitnick and I launched our new distressed properties designation course on Thursday, May 21, 2010 and received excellent feedback and reviews of the new training course that.  It is entitled Certified Foreclosure Alternatives Consultant and focuses on the real estate agent as a trusted advisor who understands how to navigate the distressed property process to include short sales.

Over the 15 months, Steve and I have certified over 600 professionals through the CSP course. We saw the need to present a more comprehensive certification course that trains the real estate professional on a advanced communication and negotiation techniques, understanding all alternatives to foreclosure, the art of short sales and introduces a complete business model to implement for a successful business.

We partnered with OnlineEd, and the course is now available both as an online version and a live classroom course.  The live class version is approved for 7 hours of CE by the Nevada Real Estate Commission.

Testimonial from our first class....

Jan and Steve:
I just wanted to take a moment and let you know that I really enjoyed myself yesterday and that it was a fantastic class. I signed up because I had come across a couple of agents last month who took your short sale class and really raved about it, saying that " it is the best one out there." I think we all have been overwhelmed with a lot of information that's hard to digest and CHANGING constantly. Often the instructors are uncertain about what they are teaching and find it challenging to organize the material for presentation; but not you!
Bravo, Kudos, Hooray. Your chemistry is a perfect blend for equipping agents to be "Certified Foreclosure Alternative Consultants!"  I'm already working on implementing some of the amazing ideas got from your class. It was a WEALTH of information. :)

Sheri Page, Realtor®
ABR, CRS, GRI, e-PRO
REO certified
Realty One Group

LEARN MORE ABOUT THE CFAC COURSE CONTENT 

When you purchase our classroom version, you get the online course FREE!

NEXT Course:

Friday, June 18th

Class is limited to 40 attendees.

This course is approved by the Nevada Real Estate Commission for 7 Hrs. of General CE Credits. CE.5094000-RE 

Doors Open: 8:15am Breakfast snacks ~ Class Time: 9am-4:30pm Lunch included!

Location: iMortgage 9139 W. Russell Rd. Las Vegas, NV 89148
(215 & W. Russell Rd. off Jerry Tarkanian Way & Oquendo Rd. - behind the Bank of George.)

The CFAC℠ Designation Course is regularly priced at $229.00

SPECIAL PRICING.... for CSP designees and members of our FREE network: http://www.shortsaleprofessionalnetwork.com/

• Only $149 if you have already earned the CSP designation! That’s a savings of $80.00 off the regular price! Apply coupon code: CSP149
• Non-CSP’s who are members of the network pay only $179.00! That’s $ 50.00 off! Apply coupon code: SSPN

LEARN MORE ABOUT THE CFAC COURSE CONTENT 

This is a limited time offer! First come, first served! This offer is good for the Nevada classroom version only! Register NOW and Reserve your Seat!

HAFA Revisions March 26 - Incentives & Real Estate Commission Enhancements

On March 26, 2010 (a week before the April 5th launch of the HAFA program) the Treasury Department issued revised HAFA short sale guidelines...  Read the press release and download the Consumer FAQs, HAMP Improvement Fact sheet

Another link to bookmark for Latest News / Press Releases for HAMP/HAFA:
https://www.hmpadmin.com/portal/news/press.html

Here are the highlights to the revision that impact the HAFA Program:

Enhancements to the Incentives portion of HAFA:

• Double relocation assistance payment for borrowers successfully completing foreclosure alternative to $3,000
• Increase payoffs to subordinate lien holders who agree to release borrowers from debt to facilitate greater use of foreclosure alternatives including short sales or deeds-in-lieu.
• The new payoff schedule allows servicers to increase the maximum payoff to subordinate lien holders to 6 percent of the outstanding loan balance and doubles from $1,000 to $2,000 the incentive reimbursement that is available to investors for subordinate lien payoffs, subject to an overall cap of $6,000. 
• Increase servicer incentive payments from $1,000 to $1,500 to increase use of foreclosure alternatives and encourage additional outreach to homeowners unable to complete a modification.
  

Revision to Real Estate Commission/Vendors Provision

• New language to clarify how a 3^rd party vendor will be paid, if applicable.  Old language vendor fee as a reduction in commission.  This language has option of vendor being paid from sales proceeds or by servicer outside of the transaction.

In paragraph 5c of the Short Sale Agreement form it now reads as follows:

Real Estate Commissions.  We will allow to be paid from sale proceeds, real estate commissions of _____ percent of the contract sales price, to be paid to the listing and selling brokers involved in the transaction. Neither you nor the buyer may receive a commission. Any commission that would otherwise be paid to you or the buyer must be reduced from the commission due on sale. [Optional text:]  Please note:  We have retained a vendor to assist your listing broker with the sale.  The vendor and your listing broker will work together on your behalf to facilitate the sale process. [Choose one and delete unnecessary text.]  [The vendor will be paid from sale proceeds [$ ________] OR [an amount equal to ____% of the sales price].] OR [The vendor will be paid by us outside of the sales transaction.]

 

HAFA/HAMP RESOURCES:

• Making Home Affordable – HAFA page with latest Program Guidelines; Borrowers Documents
  https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html 

• Making Home Affordable
  http://www.makinghomeaffordable.gov
  
  
• Home Affordable Admin Site for Servicers 
  https://www.hmpadmin.com/portal/index.html
  
  
• HAMP Participating Servicers
  http://www.makinghomeaffordable.gov/contact_servicer.html
  

Comprehensive Resource List for Short Sales, HAFA and Alternatives to Foreclosure

I just updated my Short Sale, HAFA, Alternatives to Foreclosure Resource Post.

Here it is with the latest HAFA info and downloads as well as some added links reference legal and tax ramifications for sellers

Realtor Resources for Short Sales, HAFA, Alternatives to Foreclosure

You can Download the Resource List as a PDF here:

ShortSale_Foreclosure _Links

UPCOMING TRAINING on HAFA and SHORT SALES:

WEBINAR: HAFA Guidelines and the Impact on Your Short Sale Business

Wednesday, April 7^th 10am-11am PST

_________________________________________________________________________

Certified Short-Sale Professional Designation Course
CE.4025000-RE 8 Hrs. General

Tuesday, April 13th, 2010 - 9:00am-5:30pm ~ Doors Open 8:30
Mountain View Mortgage 215 and S. Durango off W. Sunset Rd.
Instructors: Jan O'Brien, Steven Kitnick, and Attorney Robert Noggle.

Register for April 13th Course Now

Video Blog Launch - HAFA Updates from Jan OBrien - Real Estate Coach

I'm happy to announce that I have entered the world of Video Blogging as of today.  Look for more how to videos from me on everything from real estate business systems, agent team building, blogging, social media marketing and online reputation management.

Today's video covers two important websites to bookmark regarding the HAMP/HAFA Programs.

Here are the links from the video:

• Making Home Affordable
  http://www.makinghomeaffordable.gov
  
  
• Home Affordable Admin Site for Servicers 
  https://www.hmpadmin.com/portal/index.html
  
  
• HAMP Participating Servicers
  http://www.makinghomeaffordable.gov/contact_servicer.html
  

• Making Home Affordable – HAFA page with latest Program Guidelines; Borrowers Documents

https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html 

• Press Release on HAMP enhancements - March 26, 2010
  http://www.financialstability.gov/latest/pr_03262010.html  

Don't Miss the HAFA Webinar - April 7, 10am Pacific

WEBINAR.....Wednesday, April 7^th 10am-11am PST

This webinar will cover:

• Why it is important for real estate professionals to understand the guidelines?   
• HAFA’s potential impact on the short sale market
• Who is eligible for the program?
• What loan servicers are participating
• An overview of the process, paperwork, and timeframes
• Benefits including incentives to borrowers and servicers; commission protection, release and full satisfaction for borrowers from future liability
• Potential pitfalls and a few unknowns regarding 2^nd liens, possible mortgage payments, and sharing of the commission with 3rd party vendors
  
  

Don't Miss this Important Webinar - Only $9.95!  Register NOW !

Why HAMP Mods May Lead to More Short Sale Opportunities with HAFA

HAFA Complements HAMP =  Short Sale Opportunities…

The Treasury Posts a HAMP Report monthly at

http://www.makinghomeaffordable.gov/news.html

Let's Take a look at some of the stats from February 2010:

Of the over 1 million HAMP modifications initiated since the programs inception - only 168,708 have been converted to permanent loan modifications.

There are a myriad of reasons why... including borrowers not completing all requirements, turning in documentation, not making the trial payments, etc.

This is one big reason why it is CRITICAL TO UNDERSTAND THE HAFA - Home Affordable Foreclosure Alternatives Program and to be a Certified Short Sale Professional!

This graph shows the pipeline of 6 million 60+ delinquent mortgages filtered down to approximately 1.8 million potential HAMP eligible borrowers.

_________________________________________________________________________

Don't miss these next two training events:

Learn more about the HAFA program and it's potential impact on the short sale market.

Steven Kitnick, Attorney Robert Noggle and I will be presenting a Webinar sponsored by

HAFA Guidelines and the Impact on
Your Short Sale Business

     WEBINAR:  Wednesday, April 7^th 10am-11am PST

This webinar will cover:

• Why it is important for real estate professionals to understand the guidelines?   
• HAFA’s potential impact on the short sale market
• Who is eligible for the program?
• What loan servicers are participating
• An overview of the process, paperwork, and timeframes
• Benefits including incentives to borrowers and servicers; commission protection, release and full satisfaction for borrowers from future liability
• Potential pitfalls and a few unknowns regarding 2^nd liens, possible mortgage payments, and sharing of the commission with 3rd party vendors

Don't Miss this Important Webinar - Only $9.95!  Register NOW !

_________________________________________________________________________

Certified Short-Sale Professional Designation Course
CE.4025000-RE 8 Hrs. General

Tuesday, April 13th, 2010 - 9:00am-5:30pm ~ Doors Open 8:30
Mountain View Mortgage 215 and S. Durango off W. Sunset Rd.
Instructors: Jan O'Brien, Steven Kitnick, and Attorney Robert Noggle.

Register for April 13th Course Now

Recent Articles on Short Sales, HAFA, and Housing Market

Here are some recent articles on Short Sales, HAMP, HAFA, Strategic Defaults and the Housing Industry:

Studies Show HAMP Promotes Strategic Default on Mortgages

Negative Equity, Not Job Loss, Primary Driver of Defaults

Future of Fannie and Freddie Debated on Capitol Hill

White House Adds Help for Underwater, Unemployed to Housing Plan

The Truth About HAMP - Inman News

Certified Short-Sale Professional Designation Course
CE.4025000-RE 8 Hrs. General

MASTER THE SHORT-SALE PROCESS

     At the end of this course, you will be able to do the following:

 

• Know if a short sale is likely to be successful
• Understand what needs to be included for successful short sale submission package
• Discover how to generate leads and leverage the power of your designation in your marketing
• Know the latest info on Alternatives to Foreclosure, HAMP, HAFA and Nevada Foreclosure Mediation Program
• Understand potential tax ramifications of short sales
• Learn the best practices for a successful short sale business and more!

Tuesday, April 13th, 2010

9:00am-5:30pm ~ Doors Open 8:30
Mountain View Mortgage 215 and S. Durango off W. Sunset Rd.
Instructors: Jan O'Brien, Steven Kitnick, and Attorney Robert Noggle.

Register for April 13th Course Now

_________________________________________________________________________

HAMP/HAFA Enhancements Announced by Treasury

Today the Administration announced enhancements to the Home Affordable Modification Program (HAMP) to provide additional resources for struggling homeowners. These changes will provide temporary mortgage assistance to some unemployed homeowners, encourage servicers to write-down mortgage debt as part of a HAMP modification, allow more borrowers to qualify for modification through HAMP, and help borrowers move to more affordable housing when modification is not possible.  Read the full press release

Unemployed borrowers meeting eligibility criteria will have an opportunity to have their mortgage payments temporarily reduced to an affordable level for a minimum of 3 months, and up to six months for some borrowers, while they look for a new job. If homeowners don’t find a job before the temporary assistance period is over or if they find a job with a reduced income, they will be evaluated for a permanent HAMP modification or may be eligible for HAMP’s alternatives to foreclosure program.

The key changes impacting HAFA are larger payments to 2nd liens and incentives to the loan servicer and for the borrower for relocation assistance.  For short sales, the 2nd lien payment has been doubled from 3% of the outstanding balance to 6% - subject to a cap of $6,000.

Excerpted from the Treasury HAMP Improvements_Fact_ Sheet_032510 FINAL:

Helping Homeowners Move to More Affordable Housing
Increase incentives to provide more homeowners with foreclosure alternatives

• Increase payoffs to subordinate lien holders who agree to release borrowers from debt to facilitate greater use of foreclosure alternatives including short sales or deeds-in-lieu.
• The new payoff schedule allows servicers to increase the maximum payoff to subordinate lien holders to 6 percent of the outstanding loan balance and doubles from $1,000 to $2,000 the incentive reimbursement that is available to investors for subordinate lien payoffs, subject to an overall cap of $6,000.
• Increase servicer incentive payments from $1,000 to $1,500 to increase use of foreclosure alternatives and encourage additional outreach to homeowners unable to complete a modification.
• Double relocation assistance payment for borrowers successfully completing foreclosure alternative to $3,000. Help homeowners who use a short sale or deed-in-lieu to transition more quickly to housing they can afford.

Learn more about the HAFA program and it's potential impact on the short sale market.

Steven Kitnick, Attorney Robert Noggle and I will be presenting a Webinar sponsored by OnlineEd:

             Understanding the Home Affordable Foreclosure Alternatives:            
 HAFA Guidelines and the Impact on Your Short Sale Business

 

Wednesday, April 7^th 10am-11am PST

This webinar will cover:

• Why it is important for real estate professionals to understand the guidelines?   
• HAFA’s potential impact on the short sale market
• Who is eligible for the program?
• What loan servicers are participating
• An overview of the process, paperwork, and timeframes
• Benefits including incentives to borrowers and servicers; commission protection, release and full satisfaction for borrowers from future liability
• Potential pitfalls and a few unknowns regarding 2^nd liens, possible mortgage payments, and sharing of the commission with 3rd party vendors

Don't Miss this Important Webinar - Only $9.95!  Register NOW !

Stay Informed with These Key Mortgage, Housing & Real Estate Industry Blogs

One of the ways I stay updated on what is happening in the real estate industry and specifically with the economy and our current housing and mortgage default market is by subscribing to the resources listed below.

I highly recommend signing up for the daily email alerts so you can have the news and resources come to you.  I just take a few minutes a day to scan the emails with the current headlines and either read or bookmark the articles I want to save for later.

Calculated Risk - http://www.calculatedriskblog.com/

DS News - http://www.dsnews.com/

Housing Wire - http://www.housingwire.com/

RISMedia - http://rismedia.com/todays-real-estate-advisor/

Inman News - http://www.inman.com/signup