Fannie Mae is extending the 3.5%
incentive for homebuyers who purchase and close on a Fannie Mae-owned
home by June 30, 2010. Buyers purchasing properties listed on HomePath.com
will continue to be offered an incentive of up to 3.5% of the final
sales price to be used towards one of the following:
→Closing costs
→The
purchase of new Whirlpool® appliances
→A mix of closing costs
and appliances, at the buyer's discretion, up to the maximum 3.5%.
Eligibility
To
be eligible for this incentive:
* Property sale must close on or
before June 30, 2010
* Buyer must be an owner-occupant (second
homes are eligible as long as they are owner-occupied) -- investors are
excluded.
Life in the Big Apple and real estate. 25+ years and counting - an attorney working within the day to day wrangling of life as we know it.
Wednesday, April 28, 2010
Tuesday, April 27, 2010
4/28/10 through 4/30/10 NASSAU COLISEUM - MORTGAGE MODIFICATIONS - Bank Open House
There is an open house
at the Nassau Coliseum this Wednesday, Thursday
& Friday, 4/28-4/30/10 from 1PM to 7:30PM where most major
lenders will be available to discuss mortgage modifications. There was
an
article in Newsday, last Friday April 23, 2010, "EVENT OFFERS HELP TO
HARD-PRESSED HOMEOWNERS" by Ellen Yan which states:
"Next week, the Nassau Coliseum will host a marathon - three days of face-to-face negotiations between lenders and distressed homeowners. Borrowers can try to make on-the-spot loan modifications with their mortgage holders...."
All mortgagees are invited to come, bring all
their records, bills, proof of income (two most recent pay stubs), last two mortgage payment statements, layoff
notices, credit
card bills, utility bills etc. and try to work out modifications.
Wednesday, April 14, 2010
Short Sales in New York - Deficiency Judgments
As an attorney I have been working with homeowners in the luxury real
estate market in Manhattan. As we have been completing short sales, the
banks have waived the deficiency judgments on loans that are close to
the sale price. However, in a recent Bank of America short sale - the
loss is in excess of 500K -- I was presented with the following language
that the bank would not waive the deficiency unless state law required
it.
Is there a New York State law that requires waiver of the deficiency in a short sale? The short answer is no.
How contrary is this? When you access the New York State Banking department's website, it specifically states:
However after I called the Banking Department about this claim, no one could answer my questions, and they suggested that I speak with an attorney. Interesting.
After speaking with several real estate attorneys, and the New York City Bar's attorneys who specialize in foreclosures - the answer is the same -- there is no law that says the bank must waive the deficiency judgment. It seems to me as a reasonable person, that the bank would recognize that after all the work performed to acquire a buyer for a property at a higher amount then the bank would be able to receive in foreclosure, that waiving a deficiency is a better choice than taking the bankruptcy route. But then again, who ever said that the people at the banks are reasonable?
Keep this in mind - bankruptcy is the option to all of this and in New York State there is no law that says (at the time of this post) that a bank must waive the deficiency against the homeowner for the amount of the loan that will not be paid off in a proposed short sale.
At my law site I have further information regarding foreclosures, short sales, and loan modifications.
Is there a New York State law that requires waiver of the deficiency in a short sale? The short answer is no.
How contrary is this? When you access the New York State Banking department's website, it specifically states:
- "Short Sale: The lender lets the borrower sell the house for less than the outstanding loan amount, takes the proceeds and forgives the remaining debt."
However after I called the Banking Department about this claim, no one could answer my questions, and they suggested that I speak with an attorney. Interesting.
After speaking with several real estate attorneys, and the New York City Bar's attorneys who specialize in foreclosures - the answer is the same -- there is no law that says the bank must waive the deficiency judgment. It seems to me as a reasonable person, that the bank would recognize that after all the work performed to acquire a buyer for a property at a higher amount then the bank would be able to receive in foreclosure, that waiving a deficiency is a better choice than taking the bankruptcy route. But then again, who ever said that the people at the banks are reasonable?
Keep this in mind - bankruptcy is the option to all of this and in New York State there is no law that says (at the time of this post) that a bank must waive the deficiency against the homeowner for the amount of the loan that will not be paid off in a proposed short sale.
At my law site I have further information regarding foreclosures, short sales, and loan modifications.
Monday, April 12, 2010
New Short Sale Guidelines
The federal government recently announced the short sale program
guidelines for the Home Affordable Foreclosure Alternatives (HAFA)
program which will go into effect on Monday, April 5, 2010.
Bank of
America Home Loans is implementing HAFA, the program designed to help
those customers who were not eligible for the Home Affordable
Modification Program (HAMP) or any other modification. For more
detailed information on the HAFA program, go to the National Association of Realtors site.
The HAFE program provides incentives for short sales and what are known as a deed-in-lieu of foreclosure on a loan eligible for modification under the HAMP program.
A list of servicers participating in the HAMP program - including HAFA - can be found at the Making Home Affordable website.
CHASES' website regarding short sales can be accessed for further information.
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