Chase Bank's Northern California representatives shared information about the lending company's foreclosure prevention initiatives for distressed homeowners at a November meeting of the Asian American Real Estate Association - Silicon Valley chapter. The meeting was attended by about 180 real estate professionals, including members of the Silicon Valley Association of REALTORS®.
Bonnie Boards, vice president and homeownership preservation officer, said since the housing crisis began, Chase has established 51 homeownership centers in 15 states and the District of Columbia, (16 in California) to help and counsel distressed homeowners. Boards' presentation focused on the Home Affordable Foreclosure Alternatives (HAFA), the first option for those who do not qualify for a mortgage modification.
"If a borrower is not eligible for a mortgage modification,we immediately discuss the option of a short sale and the HAFA program. Make sure you ask if the homeowner is eligible for HAFA," she told Realtors.
Boards said HAFA has its merits because it provides up to $3,000 relocation assistance incentives for borrowers and requires the borrower be fully released from future liability for the mortgage debt. The mortgage servicer approves short sale terms prior to listing property using standard forms and specific time frames. Also under HAFA, the servicer may not require a cash contribution or promissory note, pursue deficiency judgment against borrowers, require a reduction in real estate commission, complete a foreclosure sale during the HAFA process, or charge the borrower any fees in connection with HAFA.
To be eligible for HAFA, the property must be the borrower's principal residence; the mortgage loan is a first lien mortgage originated on or before January 1, 2009; the mortgage is delinquent or default is reasonably foreseeable; the current unpaid principal balance is equal to or less than $729,750 (one unit); and the borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross monthly income. Homeowners who did not successfully complete a Trial Period Plan and those delinquent on a HAMP modification qualify for HAFA, but FHA loans and loans on second homes and rental properties do not.
Boards asked agents to make sure borrowers comply with all of the following: provide all information, sign and submit required documents by the deadlines; cooperate with the listing broker to actively market the property; maintain the property; make monthly payments stipulated in the Short Sale Agreement (SSA) if the HAFA reduced payment plan feature is operative in the SSA; vacate the property by vacancy date (30 days from termination of SSA or execution); and deliver a clear title to the servicer.
Chase teamswork closely with agents on offers and valuations. Boards said Chase has streamlined the short sales process and transactions have been completed in 45 days. To speed up the process further, she asked agents to complete a short sale request prior to or at thetime of listing.
"Do not wait for a buyer. Start the process now," she told agents.
Boards added, "Set reasonable expectations regarding timelines and valuations. Also, make sure there is no potential conflict of interest in the proposed transaction. Red flags will cause delay."
Silicon Valley Association of REALTORS® President-elect Gene Lentz said the information provided by Chase officials was very helpful to agents. "The short sales process is challenging, so it's good to hear directly from the lending officials. We are pleased that the Asian American Real Estate Association is providing education programs like this that will help agents facilitate the process for distressed homeowners," Lentz said.
Homeowners seeking mortgage information and assistance may call toll-free (866) 550-5705 or visit www.chase.com/myhome.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
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