Making Home Affordable: Flying Toasters and HAFA
How do you find a good loan modification specialist who won’t rip you off? Today’s economy continues to frighten many homeowners into taking a serious look at their mortgages. Many homes are no longer worth what they were when they were purchased and owners are deciding what options they may have.
How do you know if you are getting ripped off? There are scammers all over and many have absolutely no problem with taking your hard earned money from you in the guise of helping homeowner’s save not only their homes but also repair their credit scores. These scammers prey on the economic instability people continue to face as we go forward into the new decade. Jobs are still in short supply, layoffs and cutbacks continue to hit average people in the pocket book.
Another Stop gap was given when it was announced that both Freddie Mac and Fannie Mae, the two largest mortgage securers in the country were exempt from HAFA guidelines provided they invented their own. Both of these organizations have now published their versions which mimic Obama’s with only slight variances, and some between each others. One may look out and observe this alone as a recipe for confusion for the industries that must facilitate these sales as Real Estate Agents and major Banks collect the questions and concerns of millions of borrowers already distressed by their personal hardships. While it should not be a ‘news flash’ today that the world of real estate has taken itself upside down over the last three years, some distressed homeowners still have little idea that help has been available through “the Short Sale”. Public awareness media has now taken the shift to the HAMP and HAFA process while a large segment of the default population will prove to rest outside of HAFA’s eligibility requirements. The guidelines are specific to homeowners who reside in their homes as their primary residence, exempting those who have vacated their homes without proof of recent relocation and investment property owners. These situations may still be reviewed through the traditional short sale process for those who qualify.
You should look out for those companies that want to charge you fees to negotiate with your lenders and creditors only to accept the first thing the lender offers, or not really working for the consumer’s best financial advantage. If you suspect them don’t use them. Take some time to learn about all the industry has to offer and the different options available to you as the consumer. As always, get references from potential loan modification specialists, check with the Better Business Bureau to make sure they are following guidelines and procedures set up with your specific state.
A dangerous element the industry had witnessed in the category of education was oriented toward the advantage of investment buyers teaming with real estate attorneys boasting theories which provoked real estate Agents to secure low ball offers shortly after showcasing their listings in order to “get the ball rolling”. The old ‘Blood in the Streets’ movement sought claim to being the hero to both the distressed and to hungry Agents who may have had little memory of the short sale cycle of the mid 90′s. It is almost humorous to me that the many who had driven this investment philosophy the first year of this market turning era in 2007 are now victims of distress themselves or are defaulting on mortgages strategically.
In respect to positive turning of tides, Realtors who are setting a responsible example of professional expertise have not only graduated recognized professional designation courses, they have also invested in other educational seminars which expand on these and offer additional practical, theoretical and psychological training in dealing with both counseling distressed homeowners along with compassionate and tactical methods of dealing with their uneducated Agents counterparts whom are likely to bring forth their awaiting Buyers. These are the ‘New School’ Agents of our time. This raise of the bar is as equally important in my opinion and is an element of what I saw missing when my Short Sale training seminars were incepted and are currently offered to Agents in Southern California under the title of “The Short Sale SHIFT”. Agents interested in more information on these courses may inquire directly through The OracleGroup, Los Angeles, contact me directly or may pre-order my book scheduled to be released this August.
Learn more about Obama Mortgage Relief Plan Qualifications.