Fannie Mae - New Program for Forclosure Help - starts 8/1/2010

Fannie Mae Introduces HAFA Program - You can read the announcement here.


On Tuesday, June 1, Fannie Mae issued Servicing Guide Announcement SVC-2010-07, introducing Fannie Mae's Home Affordable Foreclosure Alternatives (HAFA) Program. It, like Treasury's Home Affordable Foreclosure Alternatives Program (as described in Supplemental Directive 09-09 Revised), is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP) but ultimately are unsuccessful in obtaining one.

Program Features:

The Fannie Mae Home Affordable Foreclosure Alternatives Program, which becomes effective August 1, 2010, simplifies and streamlines the use of short or "preforeclosure" sale and deed-in-lieu of foreclosure (DIL) options on HAMP-eligible loans by incorporating the following unique features:

• Complements HAMP by providing alternatives for borrowers who are HAMP eligible (including borrowers facing imminent default);

• 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;

• Releases the successful HAFA borrower from future liability for the debt;

• Uses standard processes, documents, and timeframes;

• Provides financial incentives to borrowers, servicers and subordinate lienholders; and

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

3.5% Closing Cost Assistance and Appliance Incentive Extended Through June 30, 2010

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.

NAR issues brochure to help reduce short sale stress

On April 5, 2010, the U.S. government will implement the Home Affordable Foreclosure Alternatives Program (HAFA). The HAFA helps homeowners who are unable to retain their home under the Home Affordable Modification Program by simplifying and streamlining the use of short sales and deeds-in-lieu of foreclosures. Homeowners must meet certain requirements to participate and incentive payments are provided to homeowners and servicers. To help REALTORS understand HAFA and its guidelines, the National Association of REALTORS ("NAR") has released an informational brochure available through the links below:
NAR’s press release
HAFA brochure

Homebuyer tax credit extension and expansion update

On November 6, President Barack Obama signed into law the extension and expansion of the current homebuyer tax credit, an important step in ensuring a real estate and economic recovery.

The measure extends the present $8,000 tax credit program for first-time homebuyers through April 30, 2010.

It expands the program, effective November 7, 2009, to include current homeowners, who are now eligible for an up to $6,500 tax credit (10 percent of the purchase price) through April 30, 2010 provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.

If potential homebuyers have a binding contract on or before April 30, they will have until June 30 to close the transaction.

Income limits for eligible homebuyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

Click here http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf  for detailed information about the legislation.