Staying on Top of HAMP, HAFA and HARP Homeowner Programs

Staying on top of the string of programs created to help owners caught up in the perfect storm of a high unemployment, rampant underemployment and declining home values, can be confusing to say the least. Here’s a brief overview of the acronyms spawned by the foreclosure crisis:

• HAFA—The Home Affordable Foreclosure Alternatives program was designed to help homeowners to avoid the negative effects of foreclosure by establishing incentives for completing a short sale or a deed-in-lieu of foreclosure. In a short sale, the loan servicer accepts a loan payoff amount from an underwater borrower that is less than the amount actually owed on the first mortgage. With a deed-in-lieu of foreclosure, the borrower transfers ownership of the property to the loan servicer. HAFA provides for $3,000 in relocation assistance after a successful short sale or deed-in-lieu. Which  route you go depends very much on your immediate and longterm situation--before you act, you should consult with a professional for your options.
• HAMP—The Home Affordable Modification Program was designed to help homeowners who are no longer able to make mortgage payments on time due to decreased income or an increase in the monthly payment amount. HAMP reduces a homeowner’s monthly mortgage payment to 31 percent of gross income following a series of steps on the part of the mortgage servicer that can include a rate reduction, a term extension of up to 40 years, deferred principal payments, and (possibly) a lowering of principle. Here is the link to the list of servicers or banks agreeing to participate in this program. On the Loan Lookup tool, you may be able to find out if Fannie or Freddie own your loan.
• HARP—The Home Affordable Refinance Program enables homeowners whose mortgages are backed by Fannie Mae or Freddie Mac and who owe more than their home it’s worth, to refinance and take advantage of today’s historically low interest rates. Originally, HARP was only available to homeowners whose first mortgage did not exceed 125 percent of the current market value of their home.
• HARP 2.0—Starting Dec. 1, 2011, the 125 percent loan-to-value ratio will be eliminated, enabling eligible borrowers to refinance under HARP regardless of how far underwater they are on their mortgage.

Making your way through the maze of programs can take time -- and the situation is often more complicated than it looks at first. Take this survey or contact me for additional help contacting or concerning your servicer, and finding out if your loan is owned by Fannie or Freddie.

And, homeowners looking for information on the national mortgage servicing settlement announcement by the Department of Justice should visit NationalMortgageSettlement.com. Click on the logo below for more information:

Distressed vs. Equity Market in the Long Beach Area

There seems to be a perception (among some people) that high end or "luxury" areas are somehow immune to short sales and foreclosures--but that's not true. The subprime loans, originally targeted for "B" and "C" borrowers, eventually made their way into the "A" borrower range, the borrowers most often buying in the high end price range, because of the tempting terms offered by lenders at the time.  Other factors for distressed sales in those areas are that the accumulated market conditions caused job layoffs or other income reduction, and/or the market value drop caused a short sale or foreclosure in a forced relocation for a borrower otherwise current on mortgage payment. In the high end market areas, many sellers with equity who could not sell simply delayed their plans and took the home off the market if it didn't sell.  But others who needed to sell proceeded with a short sale listing, hoping to find a buyer.

• For all of 2011, in the 90803 zip code (Naples, Belmont Shore, Bluff Park, Belmont Park, Belmont Heights), approximately 28% of single family homes in the $440,000 to $1.4 million market sold under distressed property conditions. Out of 172 single family home sales listed in the MLS, 47 were designated as a distressed property sale, most of those being short sales.   Condos distressed sales for 2011 were 37 out of 122, or 30% of the condo market in 90803.
• In the 90814 zip code (Alamitos Heights, and adjacent areas), 34% of single family homes in the $400,000-$900,000 range sold as distressed properties in 2011.

These figures are lower than Long Beach as a whole for 2011, where according to the MLS, 46% of all single family homes sold in Long Beach sold under distressed property conditions.  (These figures for all areas may be lower than the true picture, because some properties are listed as "standard sale" when in fact they are recently foreclosed properties being re-sold by banks which impose their own contract conditions upon the buyer--so they really aren't a standard sales according to standard Realtor contract terms.)

• In Cerritos, approximately 33% of single family homes listed in the MLS, or 77 out of a total of 231, sold as distressed properties in 2011.
• Lakewood's distressed single family home sales in 2011 constituted 47% of all single family home sales, comparable to the entire city of Long Beach for distressed home sales.

There really isn't any place that is immune to this category of transaction, certainly not in Southern California. For a consultation about your residential property value, and what you may be able to do, please contact me, or visit my website at www.juliahuntsman.com at "Help for Homeowners".  Don't be one of the potential sellers who does not investigate all options, the bank would really rather have a sold property, a modified loan, a re-finance, rather than a foreclosed property--it helps their values as well.

Just Sold: 5319 E. Brittain Long Beach CA 90808

5319 E. Brittain St., Long Beach

What a charming house -- beautiful 1945 home sold as a standard sale for $325,000 to the happy buyer represented by me as the selling agent in this sale.

• 2 bedrooms
• 1 bath
• 2-car garage
• lots of driveway parking space
• located on cul-de-sac
• established landscaping front and back
• lots of rear yard space

If you are interested in an evaluation of your current property and want a comparable market analysis, or you just want to find out about your area market, please contact me right away! 
Whether you are a buyer or a seller, for more information about properties on the market, contact me by phone, or view properties at www.juliahuntsman.com "Property Search".
Lic 01188996

Just Sold - in Lakewood City, Lakewood--4246 Ocana Ave.

 This 1942, 3 bedroom, 2 bath, home with original hardwood floors in the living room, added master bedroom and added family room, just closed escrow on February 1, 2012. The happy buyer willingly entered into a short sale transaction with the seller for this "opportunity" in Old Lakewood City section of Lakewood, which closed at $315,000. 

As is the case with many short sales, it was a rather lengthy affair, with the seller having obtained numerous offers--but waiting a long time for the right buyer to close escrow! Thanks to everyone who made this sale a success!

Huntsman Properties, Lic 01188996