FHA Announces Policy Changes to Address Risk & Strengthen Finances

In summary this is going to cost homebuyers MORE money. While no "date" has been set, the press release said it would be late spring/early summer when these changes are expected to take place.

Some of these changes will include:

1. Lower credit scores will require more money down.

2. Up Front Mortgage Insurance Premium (MIP) will increase by 1/2%. Changing from 1.75% to 2.25%.

3. Seller contributions will decrease from 6% to 3%.

If you have any questions about this or any other subject simply e-mail it to Questions@ZOOMLossMitigation.com.

HAFA - Home Affordable Foreclosure Alternatives Summary

The U.S. Treasury announces a plan to simplify and expedite the Short Sale approval process called HAFA - Home Affordable Foreclosure Alternatives Program.

These HAFA alternatives are available for all HAMP-eligible borrowers who:

1. do not qualify for a Trial Period Plan
2. do not successfully complete a Trial Period Plan
3. miss at least two consecutive payments during a HAMP modification, or
4. request a short sale or deed-in-lieu

As is typical with government programs, this is all simply explained (note a trace of sarcasm) in an easy to read 43 page document (if you would like a copy please email ClientCare@ZOOMLossMitigation.com) or for those of you who prefer the shorter version, the summary is below.

Summary:

- Complements HAMP by providing viable alternatives for borrowers who are HAMP-eligible.

- Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis.

- Allows the borrower to receive pre-approved short sale terms prior to the property listing.

- Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement.

- Requires that borrowers be fully released from future liability for the debt.

- Uses standard processes, documents and timeframes.

- Provides financial incentives to borrowers, servicers and investors.