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On Friday, Freddie Mac released a newsletter that has resulted in serious concerns for short sale investors. In the newsletter, they raise the question of the viability and legality of back-to-back short sale flips. 

There is tons of misinformation out there. There is information that is factually wrong. Horrible assumptions are being made. Their statements in this newsletter (this is not law, just a newsletter) show ignorance of fundamental contractual law and are contradictory to Freddie Mac’s already stated position of short sales and flips.

If this announced change does become the new policy and position of Freddie Mac, it will:

• Drive investors out of the market.
• Result in more foreclosures.
• Result in more REOs.
• Further depress the market.

It is imperative that you attend this Webinar. It is vital to short sale investors to be informed and know how this information impacts your business, and what you can do today to calm worries, fears and myths that result from their announcement. This is important enough that I felt it necessary to post on my blog.

HAFA has also created a bunch of confusion. Surprise Surprise. Our Government is good at creating confusion. In the future, you will you’ll need the HAFA addendum to add to your hardship letters to make sure your files stay out of the HAFA program.

Here are two basic reasons to avoid HAFA.

#1- The government HAFA program requires the homeowner to sign off on a deed-in-lieu in advance which is almost never disclosed.

#2- The HAFA program requires the seller to make payments at about 1/3 of their income during the short sale process which is also almost never disclosed. How many sellers do you know actually have that kind of money?

It’s almost comical this HAFA program. Currently, several loss mitigators  have no idea that the HAFA requires the deed-in-lieu and payments. These loss mitigators have no clue what they are pushing people into!

I will have more information about this soon as thre is not much information out on this yet.

Leave your comments below…

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Written by my network partner – Tom Farwell

I have never kept a running count of how many homeowners that I have spoken with, but I guess it could be around a thousand. Imagine that, having conversations with a thousand homeowners in foreclosure.

One of the weirdest things for the average homeowner, who is looking to sell as a short sale, is the fact that the foreclosing lender actually becomes the seller. It is this lender or lenders that decide how much the house is worth, how much they’ll allow for closing costs, how much they’ll allow for seller paid concessions, and finally how much they will accept as a net.

I understand the home owner’s confusion on this topic, because often I’ll get a statement from the homeowner like: “Send me an offer and I’ll think about it,” or “How much will you pay for it?” Of course, neither statement is all that relative.

Even if the lender has previously determined a short sale net that they will take, it doesn’t mean that the lender would not take a lesser amount from a different offer. For example, with the average short sale requiring about 90 days or so, I’ve seen lenders accept a short sale offer and then the buyer “walks” before the closing. Then as time creeps on, I’ve seen these same lenders accept a lesser amount than what was originally crafted. The lenders do this because they believe this offer is still better that what figure is predicted as their net in an REO sale.

So if there is a bottom line to this, it’s that the lender is the “actual” seller and even they can change their minds as to exactly what net they will take.

This article was created by my network partner Tom Farwell. Visit his website at http://www.missshortsaleexpert.com/

admin Foreclosure Help, Uncategorized Bottom Line, Closing Costs, Concessions, Confusion, Conversations, foreclosure, Imagine, Lenders, Negotiating Tips, Network Partner, Partner Tom, short sale, Writen