Real Estate Today

Debbie Carver

Real Estate for You

Auburn Reality

CENTURY 21

Auburn Realty

226 Washington St

Auburn, CA 95603

Direct:

530-320-1055

Toll Free

800-748-6668

X 157

License No:

01258966

Important Information for Home Owner’s

If you are a home owner and are having difficulty making payments or are facing foreclosure, be sure to read on to explore possible solutions.

For Sellers: With the record number of foreclosures and short sales on the market, home prices are down. If you're just someone who needs or wants to move and can't wait till the economy picks up, you're just stuck with the market price of your home in your area. However, the price of next home that you buy will most likely also be down.

Facing Foreclosure?
In Foreclosure?
Need a Loan Modification?

For Homeowners: who want to keep their property and are facing foreclosure or already in foreclosure:

The new HAFA (Home Affordable Foreclosure Alternatives) program has kicked into gear since the 1st week of April and it's proving to be a real home saver for many. There are alternatives under this program the lenders are utilizing to help homeowners come up with solutions to keeping their homes rather than go to short sale or foreclosure. Even if you're unemployed, there are plans that fit many homeowner’s situations, whether it be via a Deed of Forbearance or Loan modification or a hybrid of the two. An application is taken by the lender, pretty much like applying for a loan. The lender takes 2 years back taxes, W2s, 2 months current bank statements, 2 recent paycheck stubs, and a hardship letter, and analyses the financial information, debt to income and income to home payment amounts and attempts to come up with a solution that will financially satisfy both the distressed homeowner and the lender. In most cases a short sale will not be authorized by the lender unless this first step is completed and it's proven that a financial solution cannot be obtained.

With a short sale in the HAFA program being approved in advance, the remainder of the loan amount on the 1st and 2nd loans is to be forgiven by the lender even if the property has been refinanced. Equity loans may be an exception. In the HAFA program, the home owner is to be given $1500 after close of escrow to facilitate their move.

Of course if you've been job transferred or have some other extenuating circumstance, the short sale is still a viable alternative. The financial information given is still the same although the end result of the short sale may be different. The short sale outside of the HAFA program does not mandate the remainder of the debt be forgiven and there is no seller moving money. Each lender handles it differently.

Thank you,

Debbie Carver

CENTURY 21 Auburn Realty

530-320-1055 em: carvdeb@yahoo.com