Mortgage Principal Balance Reductions | Underwater Homeowners To Be Bailed Out?
Watch out for this one…Principal Mortgage Balance Reductions.
We have watched this topic pop up now and then since 2007. Now, Barney Frank is seemingly championing the idea. In case you didn’t know it….Senator Frank doesn’t mess around. We suspect that Senator Frank is rolling this highly controversial topic out now to put the banks on notice that they sure as heck better abide by the new Treasury Departments HAFA Short Sale Program.
In case you have been living under a rock…2010 IS the Year of the Short Sale. Read this post now for more info on the simply stunning changes to short sales that are taking place 04/05/2010. YES…thats NEXT MONTH!
What does this mean to you?
Imagine a world where almost like magic…all the negative equity for every homeowner simply goes…’poof’. Gone, no more upside down homeowners. Does this sound like a great idea to you? Watch this video and share your comments.
Mor
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What if a sellers principal balance is 296k but escrow and penalties,now say 380k seller still has some equity and could sell even higher (for what the mkt bares)they wouldnt do a short sale,what can they due if there bank wont do a loan mod etc..
Response to TJ Roberts;
Agitation is the name of this game.
Have your Homeowner/Seller resubmit for HAMP loan modification with simultaneous “same financial package” HAFA request for pre-qualification for short sale. According to the HAFA guidelines these can be requested at the same time but cannot run consecutively. The Lender is allegedly required to accept one or the other.
If succesful this removes all extraordinary charges and fees that have increased that balance owed and eliminates the 1099-C or promissory note from the lender for any losses incurred.
As the cover letter for that dual package have your client submit a written complaint with the Treasury Departments regulatory oversight division for HAMP program. Using that same written complaint as the cover letter with all of the case codes, submission dates, etc.
Additionally a complaint/threatening letter sent directly to the trustee of the inevitable investor trust that purportedly owns the loan with a carbon copy of that to the servicer in the HAMP-HAFA application package. This letter alleges “collusion” between the master servicer and the trustee which can serve to impugn the credibility of the trust using the REMIC rules for IRS tax deductions for all investors of that portfolio.
The Obama HAMP program encourages Homeowners to apply for these programs on their own but in the real world hiring a legitimate dedicated professional to act as third party witness and manage the process with weekly telephone follow up works at a much higher percentage than when Homeowners attempt to navigate this convulted, corrupt loss mitigation maze on their own.
THIS WORKS BUDDY, GOOD LUCK!