Before You Put Your Chicagoland Home Into Short Sale, See If You Qualify For HAFA

Before You Put Your Chicagoland Home Into Short Sale, See If You Qualify For HAFA

In case you missed it, here are Home Affordable Foreclosure Alternatives (HAFA) February 2015 Updates

The government-sponsored program, Home Affordable Foreclosure Alternatives (HAFA), helps qualified homeowners seeking to transition to more affordable housing if they can’t afford their mortgage.  They offer two options, a short sale or a Deed In Lieu (DIL) of foreclosure.

To make the transition as favorable as possible, HAFA offers the following benefits:

• Free advice from HUD-approved housing counselors and real estate agents. (Ask CDPE certified Broker, Teresa Ryan, how you can avail of HAFA if you meet the criteria.)
• A HAFA short sale completely releases the homeowner from mortgage debt after selling the property.
• HAFA has a less negative effect on credit score than foreclosure or conventional short sales.
• Visit the HAFA website (http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx) for a complete list or call 630-276-7575 to speak to a Ryan Hill Realty HUD-qualified agent.

Homeowners that may be eligible for HAFA fall into the following *criteria:

• Documented proof of financial hardship
• First mortgage was less than $729,750
• Obtained mortgage before January 1, 2009
• Have not purchased a new home within the last 12 months
• No criminal convictions of felony larceny, theft, fraud, forgery, money laundering, or tax evasion in connection with a mortgage or real estate transaction in the last.10 years.

Here is an update by HAFA in February 2015.  It includes changes such as:

• Homeowners can receive relocation assistance of up to $10,000 at closing after February 1, 2015.
• Investor reimbursement increases to two dollars for every three dollars of short sales proceeds paid to a subordinate lien holder, up to a maximum of $8,000.
• Subordinate mortgage lien holders can be paid up to $12,000 of gross sales proceeds in exchange for a release of the lien and full release of borrower liability.

(Source: Certified Distressed Property Expert (CDPE))

If you are ready to do a Naperville short sale call me, Teresa Ryan at 630-276-7575.  As a Certified Distressed Property Expert (CDPE), and Managing Broker / Owner of Ryan Hill Realty – www.RyanHillRealty.com, I have the experience and tools to help you sell your Naperville short sale home.

Is It Possible to Buy Another Home 1 Year After A Naperville Short Sale?

Yes, you can buy a house within 1 year of a Naperville short sale if you meet the prerequisites.

Homeowners who have gone through short sales in Naperville now have another chance at homeownership, thanks to some changes in housing rules by the FHA and Fannie Mae.

Over the summer of 2014, the Federal Housing Administration (FHA) made some policy changes that now allow former homeowners and short sale sellers to purchase another home a year after the Naperville short sale was completed.  This is very good news for Naperville homeowners who qualify, considering the previous waiting time to get a new home loan and buy a new home used to be 2 to 3 years after a short sale.

The FHA released its “Back to Work” program where qualified borrowers can apply for a new home loan 1 year after a short sale, foreclosure, or bankruptcy.

Some of the qualification prerequisites for the borrower include:

• Should have lost their home as a result of a financial hardship that was no fault of their own.
• Should not have any other negatives on their credit report except for the short sale.
• Required to take counselling class on housing if he or she plans to take an FHA home loan.

With these new guidelines in place, homeowners who have gone through a Naperville short sale can now get to their second chance at homeownership faster if they meet the qualification criteria.

For more tips and advice on doing short sales in Naperville, please visit 

www.RyanHillCanHelp.com

If you are ready to do a Naperville short sale call me,  Teresa Ryan at 630-276-7575.  As a certified Short Sale agent and Managing Broker/owner of Ryan Hill Realty, I have the experience and tools to help you sell your Naperville short sale home.

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Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1288 Rickert Dr Suite 300, Naperville, IL 60540

630-276-7575

TRyan@RyanHillRealty.com

3 Tips for a Successful Naperville Short Sale

3 Tips for a Successful Naperville Short Sale

Naperville short sales continue to be in the market and many homeowners still face the reality of owing more than their Naperville home is currently worth.

There is no guarantee for a successful short sale, since no two short sales are alike. However, there are many factors in a Naperville IL short sale that are crucial to its success.

Here are some general rules to keep in mind when it comes to doing short sales in Naperville:

• Have All Your Financial Documents Ready for Your Naperville Short Sale Agent to Submit to the Lender.

Many short sales in Naperville get delayed or take a long time because the required documents were not submitted on time or were incomplete. All lenders have gatekeepers who screen short sale packages before the file moves on to the person who approves the short sale request. Make sure to sign all pages where your signature is needed. Even on electronic tax returns (where most homeowners almost never sign), the lenders will want to see your signature on those pages.  Make sure to include all pages of your bank statements, even the blank ones since these statements are numbered. If page 7 of 7 is not included, then it could be a cause of delay for your short sale.

• Continue Paying Your HOA fees.

If you live in a subdivision or condo with a homeowners’ association, you need to keep paying your HOA dues even if you are pursuing a short sale. Lenders are not willing to pay HOA fees as part of their expenses during a short sale. Many HOAs have specific statements in the contract which allows them to legally pursue a homeowner for back HOA dues. While some HOAs might agree with a settlement, getting a short sale bank or lender to pay the HOA dues might be a huge obstacle in trying to reach a successful short sale.

• Provide a Letter of Explanation for Missing Documents.

If, for some reason, you don’t have one of the lender-required documents like a paystub because you are currently unemployed, make sure to submit a letter of explanation on why the requested document is missing.

These are just some tips on how to successfully navigate through the Naperville short sales process.

If you want more tips about doing short sales in Naperville, visit - www.RyanHillCanHelp.com

If you are ready to do a Naperville short sale call me, Teresa Ryan at 630-276-7575.  As a certified CDPE and Short Sale agent and Managing Broker/Owner of Ryan Hill Realty, I have the experience and tools to help you sell your Naperville short sale home.

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Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1288 Rickert Dr Suite 300, Naperville, IL 60540

TRyan@RyanHillRealty.com