Thread: Foreclosures and Short sale !!!!!!!

Yeah I concur with you,foreclosure are selling like an hot pie..

Individuals prefer investing in foreclosure as foreclosure involves selling of the property at the lower price I comparison to the actual price of the property.

This statement seems more of an opinion rather then factual.. Banks still have BPO/Appraisals performed to sell the foreclosed home at fair market value just as a realtor or bank will do the same for a short sale.


When buying a foreclosure banks will stand firm and sell AS-IS, meaning your investor could be looking at putting a significant dollar amount back into the property. When buying a short sale it is still AS-IS but you MIGHT have the opportunity for the seller to fix repairs if agreed to..

One area that I think a lot of investors and RE agents are missing are the new HAFA rules. These are really having a big impact on the short sale market yet some agents don't even know they are in play.

As a quick recap from hafaprogram.com

"On November 30, 2009, the US Treasury Department created the HAFA Program (Home Affordable Foreclosure Alternatives Program) to establish short sale and deed-in-lieu of foreclosure (DIL) policies, procedures and forms to provide alternatives other than foreclosure for borrowers. This program was created for those borrowers who:

• Do not qualify for HAMP;
• Are unable to complete a HAMP loan modification; or
• Do not accept a HAMP loan modification.

The initial deadline for lenders and servicers to implement HAFA was April 5, 2010. The program expires December 31, 2012 unless it is extended. Lenders and servicers participating in HAMP, and all other qualifying loans, are required to follow the new rules in the HAFA program for all loans which meet the program.

-This is in-house content so I do have the rights to repost-

How are investors affected by HAFA? HAFA/HAMP is intended for sellers not investors..

HAMP has been relatively unsuccessful, and trying to get HAFA to work in that situation will be minimal at best.

Some HAFA rules can effect investors. Especially those who quickly "flip" short sale deals.

The 90 day freeze on selling a HAFA short sale could definitely trip up some quick turn short sale investors.

Also their is some important language about subordinate liens that could come back and bite the seller and in turn the investor if they did not explain this to the seller.

Bottom line is that it is important for any investor who buys a HAFA involved short sale to at least understand the process.

I am sure there are a few Guru's out there who forgot to cover this in their latest "course".

But you are right, if no banks are jumping on board what does it really matter.

-Tyler A.
Boise, ID

Whatever the problem is the center understands it and their pool of experts explain the process to you while letting you know where exactly you stand and what best you can do to save your property from foreclosure.

It is important to gather as much information as possible about the properties and owners before you get on the phone with lenders. Because when you get a lender representative on the line, he or she has problems.