Effective April 5, 2010 the following rules will apply to MHA/HAFA short sales. 

The Home Affordable Foreclosure Alternatives Short Sales Program (with a few new “tweaks”)

• Allows the borrower to receive pre-approved short sale terms from the Servicer prior to the property listing. These terms are clearly spelled out in a standard Short Sale Agreement form (SSA) provided by the Servicer and agreed to by the seller.  The SSA includes the list price or identifies acceptable sale proceeds which are expressed as a net amount after subtracting allowable costs that the Servicer will agree to. The minimum net amount in the SSA may not be increased until the initial Short Sale agreement termination date is reached (this is not less than 120 days). Servicer may choose to extend the Short Sale Agreement up to a total term of 12 months.
• Requires that borrowers be fully released from future liability for the first lien mortgage debt.
• Uses standard processes, documents, and time frames.
• Provides a $1,500 relocation allowance to the borrower following a successful short sale.  Servicers and investors receive government financial incentives as well.
• Within three days of receipt of an executed purchase offer, the borrower/listing agent submit to the Servicer a Request for the Approval of Short Sale (RASS) form complete with
• • Executed sales contract and addenda
  • Buyers documentation of funds or lender  preapproval or commitment letter
  • Information on status of negotiations with subordinate lien holders
• The Servicer must approve or disapprove the sale within ten business days by signing the RASS and mailing it to the borrower.  This should speed things up!
• Here’s the specific language from the new directive as it applies to commission, “The Servicer may not require, as a condition of approving a short sale, a reduction in the real estate commission below the commission stated in the SSA.”   (The commission cannot exceed 6%.)

View all the MLS listings at www.RonBarnesRealEstate.com

I’ve been doing a little reading lately, and a little listening too. There is this guy named Stephan Swanepoel, who is supposed to be the Grand Pooba of real estate forecasting. Most people have never heard of him, which makes him even more mysterious. Like most of the gurus, he never seems to remember when he was wrong, but he is right most of the time. There is another guy named Dan Forsman, who happens to be the CEO of our company, and is also a CPA and pretty shrewd number cruncher. If you pay attention to them you can learn some things. (more…)