http://www.housingwire.com/2010/04/09/using-hamp-borrowers-flaw-to-hafa-success-servicing-panel/ There is a fundamental flaw to the Make Home Affordable Foreclosure Alternatives (HAFA) program that will keep the program from reaching its full potential, panelists told the audience today in Dallas at the Source Media Mortgage Servicing Conference. That flaw is that the program requires the borrower... [more]
http://www.housingwire.com/2010/04/09/using-hamp-borrowers-flaw-to-hafa-success-servicing-panel/
There is a fundamental flaw to the Make Home Affordable Foreclosure Alternatives (HAFA) program that will keep the program from reaching its full potential, panelists told the audience today in Dallas at the Source Media Mortgage Servicing Conference.
That flaw is that the program requires the borrower exhaust the Making Home Affordable Modification Program (HAMP) before proceeding to a HAFA short sale. That strategy takes a borrower that’s committed to staying in their home, and transferring the loss mitigation strategies from a workout plan to vacancy, said Robert Hunter, a vice president of Amherst Securities.
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Response by Riversider
almost 16 years ago
Posts: 13572
Member since: Apr 2009
The average borrower who’s trying to save their home isn’t going to call a real estate agent the day after they’re told no. They’re going to try to wait it out, especially if they’re unemployed and trying to get a new job, said Bryan Bolton, senior vice president of loss mitigation at the mortgage division of Citi.
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Response by notadmin
almost 16 years ago
Posts: 3835
Member since: Jul 2008
"Barbara Peterson, assistant vice president and assistant manager of default servicing at M&I Corp. (MI: 8.96 +0.56%), is vehemently opposed to principle forgiveness, especially for borrowers who are underwater on their mortgages, but can still afford their monthly payments."
of course! there shouldn't even be the need to mention this. if they bought high instead of waiting for lower prices, they have only themselves to blame. if htey prefer to walk away, that pushes prices down and rewards those that waited. not too shabby!
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Response by The_President
almost 16 years ago
Posts: 2412
Member since: Jun 2009
Barbara is opposed to principal forgiveness because it hurts her business.
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Response by notadmin
almost 16 years ago
Posts: 3835
Member since: Jul 2008
taking a mortgage doesn't mean "i'll pay if home prices go up, the mtg holder take the loss if they go down". it's not a non-losing proposition. if the borrower was a sucker and bought too high, it's his fault. sure, he can walk away if he wants to and the bank will sell the house at an auction, so what?
The average borrower who’s trying to save their home isn’t going to call a real estate agent the day after they’re told no. They’re going to try to wait it out, especially if they’re unemployed and trying to get a new job, said Bryan Bolton, senior vice president of loss mitigation at the mortgage division of Citi.
"Barbara Peterson, assistant vice president and assistant manager of default servicing at M&I Corp. (MI: 8.96 +0.56%), is vehemently opposed to principle forgiveness, especially for borrowers who are underwater on their mortgages, but can still afford their monthly payments."
of course! there shouldn't even be the need to mention this. if they bought high instead of waiting for lower prices, they have only themselves to blame. if htey prefer to walk away, that pushes prices down and rewards those that waited. not too shabby!
Barbara is opposed to principal forgiveness because it hurts her business.
taking a mortgage doesn't mean "i'll pay if home prices go up, the mtg holder take the loss if they go down". it's not a non-losing proposition. if the borrower was a sucker and bought too high, it's his fault. sure, he can walk away if he wants to and the bank will sell the house at an auction, so what?