Bloomberg - HAFA Foreclosure Alternatives - Game Changer and increases Short Sales.flv

The news keeps coming out about the new government plan to stop foreclosures and make Short Sales more feasible. On April 5th, a day I am very close to, the new HAFA plan was started. HAFA stands for Home Affordable Foreclosure Alternative. That is a wierd way of saying "easier Short Sales."
This program is expected to help Short Sales explode. The corporate heads in our financial system have to wait for proven facts to learn what we on the street saw as basic logic. So here we are 3 years later and they finally see that Short Sales are netting the banks close to double the amount of money as they get from a Foreclosure. Yes, I said double. I didn't realize it was that high, but in hindsight (everything is clear in hindsight) it makes more sense. They don't have to pay their huge REO department for Short Sales, nor Field Services, utilities, repairs and holding costs. Studies are showing that on average a Foreclosure sales returns 30% of the original loan amount after all expenses are accounted for. However, with a Short Sale, the average return is 60% of the original loan amount. Not only that, but as they expedite the Short Sale process, buyers will no longer need to get a discount when buying a Short Sale. This will firm up the market.

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News & Politics

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• HAFA
• Home
• Affordable
• Foreclosure
• Alternative
• Hamp
• Before
• and
• Short
• Sale
• Jeff
• Cameron
• Realtor