We just got out of a meeting with our Real Estate Attorney. He indicated that in the Tampa Bay Real estate market, short sales are becoming increasingly difficult. The banks are foreclosing on properties instead of proceeding with short sales. Short Sales are now taking up to 8 months to respond to offers. Maybe this is why we are number #2 in the U.S. for foreclosures?
The latest news is that Foreclosures are highly likely on a short sales. This is especially true If BOA has the mortgage. Why? The investors are not approving the deficiencies, which has to be agreed on if the loan has been sold by BOA to an investor. This applies to 2nd mortgages as well.
The HAFA Program ISN’T Working
(Home Affordable Foreclosure Alternatives)
The intention of the HAFA program was designed to protect the homeowner from going into foreclosure. The seller’s bank is supposed to agree to do a short sale, and the bank would sign off on the deficiency. Once the seller asks for the HAFA program, the bank puts on the breaks. Why? Because under the HAFA program they legally can’t go after the seller for a deficiency.
HAFA was Initially announced on May 14, 2009, the program will help owners who are unable to retain their home under the Home Affordable Modification Program (HAMP). A borrower (the current owner) may be able to avoid a foreclosure by completing a short sale or a deed-in-lieu of foreclosure.