Joyous thousands cheered in the new Administration not so many months ago eagerly anticipating “change”. We didn’t get change, we got DRAG and STALL. Thousands have failed to modify their loans using one of the bail-out programs. So, instead of foreclosures hitting the market months ago, these borrowers rode out the program and are now primed for the courthouse steps. These foreclosures will hit the housing market when there are no more bail-out dollars and no more constituent support of more ineffective government programs.
According to a recent report released from the Treasury Department, over 436,000 borrowers have dropped out of the $75 billion MHA [Making Home Affordable] plans as of the end of last month.
Over 1.24 million people had enrolled for a HAMP Modification since March of 2009 out of the 1.51 million borrowers that were offered the program. The fall-out is nearly 35% of that crowd at over 429,000. In fact, more people are dropping out than are receiving a successful modification.
Most of the borrowers that are dropping out of the modification programs are doing so during the trial period. Over 340,000 homeowners have received permanent loan mods. Of those, only 6,300 have failed at this point. However, experts predict that many of these permanent modifications will still come back to the foreclosure lists.
- Borrowers are still carrying high debt burdens and housing prices are still not on the rise leaving these borrowers underwater and without incentive to continue paying for their oversized mortgage.
Thus, the HAFA program. Many of the borrowers who have failed to modify under HAMP are left with the short sale solution. If they qualify for HAFA, they are given pre-approved listing terms and a large period of time to market the property for a fair market offer. [If you are interested in receiving HAFA Eligible leads --> Fill out our HAFA survey today]
For borrowers not eligible for HAFA, a standard short sale is still an ideal if not even better option. In our office, short sales are our current bread-n-butter. We actively list and process what we refer to as standard “retail short sales” in our office. As an investor, I also take the opportunity when presented to purchase a short sale property that comes into our system that matches my investment criteria.
If you are building your short sale business, now could not be a better time to use short sales to drive and grow your business. We grew from an investor only office to now a full-service licensed real estate team using short sales as our catalyst. Now we have the tools to process wholesale deals and rehab projects all while fully monetizing the standard short sale listing. Want to know more, this is the time to get the goods Fortune Builders Mastery
To Your Short Sale Success
NOW = Bring on the discussion!
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