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December 2012 | Making Home Affordable
Making Home AffordableWorking Together to Help Homeowners
2December 2012 | Making Home Affordable
MHA Offers Solutions
MHA and
related
programs work
together to
help
homeowners
avoid
foreclosure.
3December 2012 | Making Home Affordable
MHA Provides Relief to Struggling Homeowners
Nearly 1.3
million actions
taken to help
homeowners.
*Does not include 1.5 million Home Affordable Refinance Program (HARP) refinances through July 2012.
Source: Making Home Affordable ProgramPerformance Report Through September 2012
MHA Foreclosure Avoidance ProgramsHomeowner
Assistance
Actions
Home Affordable Modification Program (HAMP) 1,090,596
Second Lien Modification Program (2MP) 96,922
Home Affordable Foreclosure Alternatives (HAFA) 75,423
Unemployment Program (UP) Forbearance Plans 27,031
Treasury FHA‐HAMP and RD‐HAMP 9,100
Total *1,299,072
4December 2012 | Making Home Affordable
There’s Still Work to Do
While we see
signs of
recovery,
families and
communities
continue to
struggle with
foreclosure.
Source: RealtyTrac
5December 2012 | Making Home Affordable
MHA Enhancements Help More Homeowners
Enhancements
designed to
provide relief
to more
homeowners
and to
accelerate
housing market
recovery.
6December 2012 | Making Home Affordable
When the
weight of
homeownership
becomes too
great, there are
still options to
avoid
foreclosure.
HAFA Offers Transition from Homeownership
• Home Affordable Foreclosure Alternatives
(HAFA) includes short sale and deed‐in‐lieu of
foreclosure (DIL). • Think HAFA when:Mortgage has become unaffordable, and
homeowner needs a way out.Homeowner doesn’t qualify for modification.Modification doesn’t work out.Homeowner has moved and needs to sell.
Path back to homeownership generally shorter from short sale than from foreclosure.
7December 2012 | Making Home Affordable
HAFA Offers Benefits
HAFA
continues to
set the
standard for
short sales in a
difficult
market.
• HAFA available for principal residence, rental property, and vacant property (not
condemned).• HAFA features standardized time frames.• Short sale terms can be pre‐approved.• Commission for real estate professionals is set.• Homeowner must be released from personal
liability for mortgage debt.• Relocation assistance ($3,000) may be provided
to homeowner or tenant.• Cap on subordinate lien payoff amounts
increased from $6,000 to $8,500.• Foreclosure not to be completed during review.
8December 2012 | Making Home Affordable
HAFA is Streamlining Documentation
New HAFA
guidance
makes use of
certain
documents
optional.
EffectiveFeb. 1, but servicers may implement immediately.
• Request for Mortgage Assistance (RMA) Form,
which includes Hardship Affidavit and Dodd‐
Frank Certification, most comprehensive.• No income documents required except as
required by investor guidelines.
HAFA‐specific documents SSA, DIL Agreement,
RASS, Alt RASS now optional or replaced.
Servicer must provide HAFA terms in writing.
9December 2012 | Making Home Affordable
HAFA Servicers to Provide Timely Decisions
Generally, servicer to decision homeowner’s
request within 30 calendar days.• Servicer to respond in writing with one of the
following:
Confirmation of HAFA eligibility and terms of
HAFA short sale or DIL.
Notice of ineligibility and either terms of
proprietary options, or non‐approval of any
short sale or DIL.
Confirmation of receipt (within 10 days), copy
of the Hardship Affidavit, description of
evaluation process, and timeline for decision.
New HAFA
guidance
shortens
servicer
response time.
EffectiveFeb. 1, but servicers may implement immediately.
10December 2012 | Making Home Affordable
HAFA Further Defining Hardship
• Homeowners must demonstrate hardship for
HAFA eligibility:
Reduced income
Increased expenses
Excessive debt
Insufficient cash reserves
“Predetermined Hardship”
= 90+ days
delinquent plus FICO score <620.
New HAFA
guidance
defines
“predetermine
d hardship.”
EffectiveFeb. 1, butservicers may implement immediately.
11December 2012 | Making Home Affordable
Financial Hardship Eligibility for Service Members
• HAFA takes into account the challenges a PCS order creates for service member.
• Service member can cite PCS order as basis for
financial hardship:Regardless of whether income decreased.As long as the service member does not have
sufficient liquid assets to make mortgage
payments.
HAFA
recognizes PCS
as “financial
hardship.”
12December 2012 | Making Home Affordable
Industry Resources
Resources are
in place to help.
• Trusted Advisors can escalate cases to the HAMP
Solution Center: [email protected]
or
(866)939‐4469.
• FannieMae.com, (800)7Fannie,
KnowYourOptions.com,
• FreddieMac.com, (800)Freddie and select option 2.
• For assistance with FHA loans, contact the FHA
National Servicing Center at (877)622‐8525 or
HUD.gov/offices/hsg/sfh/nsc/nschome.cfm.
• For assistance with VA loans, call (877)827‐3702 or
visit HomeLoans.va.gov.
• For help with USDA RHS loans, contact the Centralized
Servicing Center at (800)414‐1226.
13December 2012 | Making Home Affordable
Learn More About MHA
Visit
HMPadmin.com
for official
guidance,
learning
opportunities,
newsletters,
and more.
14December 2012 | Making Home Affordable
Access HAFA Tools
Visit
HMPadmin.com
for HAFA
information and
tools.
15December 2012 | Making Home Affordable
Escalate Difficult‐to‐Resolve Cases
Trusted
advisors
escalate cases
Follow up by
phone to866‐939‐4469.
16December 2012 | Making Home Affordable
Register for MHA Training
Webinars are
conducted
regularly on
MHA program
fundamentals,
resources, and
more. Register
today
at
HMPadmin.com.
17December 2012 | Making Home Affordable
Includes
program
updates,
outreach
events,
homeowner
resources, plus
learning and
partnership
opportunities.
Subscribe to the MHA eNewsletter
18December 2012 | Making Home Affordable
Visit MHAStorefront.com
Order MHA
brochures and
posters. Have
them shipped
to you at no
cost.
19December 2012 | Making Home Affordable
New! Explore Resources for Military
More flexible
eligibility
provisions are
designed to
assist our
nation’s service
members and
their families.
20December 2012 | Making Home Affordable
New! Resources in Spanish
New! MHA.gov
in Spanish!
21December 2012 | Making Home Affordable
Help for Homeowners –
Ontario, CA
We’re in
Ontario, CA for
our 80th
event.
22
Foreclosure Alternatives Foreclosure Alternatives
December 4, 2012 December 4, 2012
Introduction
Eric MorenoVice President Foreclosure AlternativesChase
23
24
Chase Liquidations
Chase List Management Department
How Can You Help Us
Chase Liquidation Webpage
Chase Liquidation Resources
Chase List Management program was designed to proactively reach out to
customers who have properties listed for sale to assist through the marketing
process and collect all required documentation prior to the offer in an effort to
expedite approval.
Establishing a dedicated team to work closely with real estate agents on offers and property
evaluations.
Evaluating every homeowner for the HAFA program upon entering our list management
department.
Proactively reaching out to homeowners who have listed their property.
Working to gather the required documents, provide guidance on property value, and assist
during the marketing period.
List Management agents will also take incoming calls from real estate professionals and
homeowners to provide status updates throughout the marketing process.
The List Management agents will explain to the borrower their options and liquidation
progress until an offer is received.
Once an offer is received the file will be assigned to a negotiator to complete the
transaction.
Through our List Management team, we have enhanced our short sale efforts and
streamlined the process by:
25
Chase List Management Department
26
Submit all required documentation as soon as possible:
If an offer is not received on the property, provide an executed
listing agreement and
MLS listing history.
If offer has been received, provide all information discussed previously
Help the homeowners in negotiations with junior lien holders.
Make sure all required signatures are on the relevant documents.
Set reasonable expectations on timelines and valuations (normally
within 10 days of the request.)
Ensure that the proposed transaction is at “Arm’s Length.”
Make every effort to ensure title and escrow are scheduled to close
within the approved timeframe.
How Can You Help Us?
27
Liquidation Webpage
28
Access the Chase Short Sale website On‐line at
https://www.chase.com/shortsale
Locate more information on the Chase HAFA program
https://www.chase.com/HAFA
Locate a Chase Homeownership Center On‐line at
https://www.chase.com/MyHome
Short Sale Hotline: 1‐866‐233‐5320
Liquidation Resources
Short Sale Fax Line: 1‐866‐220‐4130
“All About Short Sales” A guide to working with Wells Fargo
Abel Fregoso, Jr
Vice President
National Field Short Sale Manager
Live Workshop and Webinar for Real Estate Professionals
December 4th in Ontario, CA
303030
Strategic partnership – Wells Fargo and our REALTOR® partners
Wells Fargo’s primary concern and obligation is to our customers and investors. Our goal is to exhaust all efforts to help customers remain in their homes through various workout options.
Once home retention efforts are no longer an option, Wells Fargo continues to work diligently to provide alternatives to foreclosure through short sales or deeds-in-lieu of foreclosure. Our last resort is to foreclose.
Our partnership with experienced real estate brokers and their agents, familiar with the management of distressed real estate, is key to our success and commitment to quality service. Our REALTOR® resources’ expertise helps us to deliver timely solutions to assist customers, minimize losses to investors, and help to rebuild and stabilize our communities.
These are unprecedented times in our industry, and now more than ever it is critical that we work together as leaders in driving options and results to help in the recovery of a strong housing market.
Our REALTOR® resources help us by providing their:–Familiarity with local market trends and community goals
–Established relationships with the real estate community
– Expert knowledge in short sale and REO liquidations
–Strong customer service and communication skills
Overview
31
What is a short sale?
A workout option that allows the homeowner to sell the property for less than the total amount owed.
It is not your traditional real estate transaction and timeframes may take longer depending on the participants involved.
A short sale is a settlement of debt.
Acceptable short sale hardships
Examples of historically acceptable hardships
– Death of primary or secondary wage earner
– Illness/ injury (Long-term disability)
– Forced job transfer
– Unforeseen increase in living expenses
– Loss of employment/ significant income reduction
– Divorce
– Mortgage payment increase
– Disaster (natural or man-made)
– Business failure
32
333333
Short sale as an excellent alternative to foreclosure
Customer benefits
–Alternative to foreclosure with planned and graceful exit, Wells Fargo or investor pays closing costs and incentives in certain cases
–May be eligible for debt relief under the IRS code until end of December of 2012
–No deficiency recovery in some states such as California
Buyer benefits
–Usually home is in better condition than buying a foreclosed property
Junior lien holder benefits
–Higher debt payment resulting from short sale versus foreclosure transaction
–ILM (Industry Lien Match) program
Community benefits
–Occupied and maintained properties
–Stabilizing neighborhoods
–Keeping properties occupied clearly reduces the potential that properties will be vandalized or become havens for criminal activity
A short sale is an option that allows the customer to sell the home for less than total amount owed. When all home retention options have been reviewed and exhausted, we immediately begin working with the borrower to determine if a short sale can be accomplished. A short sale benefits everyone.
Getting started – three options
34
Option 1: Equator®
Web-based platform for real estate agents – www.equator.com
Option 2: Phone/Fax - Traditional
Call loss mitigation (866)903-1053
Fax loss mitigation (866)969-0103
Option 3: Short Sale Field Team
Localized sales team in high-priority markets (i.e., CA, FL, AZ, NV)
Face-to-face support for real estate agents
Wells-owned portfolio
35
Inland Empire Field Short Sale Manager
Wells Fargo Home Mortgage
Field Short Sale Manager
Amelia Castro
(714)904-2615
35
Standard required documents – short sale application
From Homeowner
– Hardship Letter: signed and dated within 60 days of the short sale approval, explaining why they are unable to pay the mortgage
– Financial Worksheet: financial worksheet listing all monthly expenses signed and dated within the last 60 days
– Proof of Income: paystubs (2 most recent) and tax returns (last 2 years) signed and dated by the homeowner
– Authorized Third Party Letter: letter that authorizes a third party (homeowner's real estate agent) to access information on the account
From the Authorized Third Party (Homeowner’s real estate agent)– Fully Executed Listing Agreement– Estimated HUD-1
36
Note: Less documentation is needed for Wells-owned portfolio
Short sales options for our customers
HAFA Short Sales– HAFA: Home Affordable Foreclosure Alternative– Allows eligible customers to receive a short sale agreement
prior to listing their property– Financial incentives available
• $3,000 to customer at closing
• $1,500 to servicer after closing
• $8,500 or up to 10%, whichever is less, to Jr. lien holders
Proprietary Short Sale– Available to customers who do not want or do not qualify
for HAFA– Short sale request is considered once the customer has an
offer– Possible financial incentives– 6% to 10% maximum is set to pay Jr. lien holders
37
Wells Fargo short sale path – six steps
38
Note: If not eligible, then file will be considered for proprietary short sale
All short sale files are reviewed for HAFA eligibility (except FHA & VA)
Wells Fargo Online Agent Resource Center
39
New robust online agent content launched September 14th
Provides short sale educational materials, downloadable information and other resources www.wellsfargo.com/shortsaleagent
40
Realtor Hotline for Loan Servicing Default Liquidations Escalations
1-877-841-5301
– 7AM – 10PM CST Mon – Fri
Questions?
Short Sale Inventory
42
3
Short Sale Benefits
Relocation incentive.1
43
1 Subject to approval2 Subject to specific conditions3 This timeline might increase if investor approval is required.
Short Sale Benefits
Relocation incentive.1
Forgiveness of the deficiency.
44
1 Subject to approval2 Subject to specific conditions3 This timeline might increase if investor approval is required.
Short Sale Benefits
Relocation incentive.1
Forgiveness of the deficiency.
Foreclosure hold or foreclosure sale postponement, if
applicable.2
45
1 Subject to approval2 Subject to specific conditions3 This timeline might increase if investor approval is required.
Short Sale Benefits
Relocation incentive.1
Forgiveness of the deficiency.
Foreclosure hold or foreclosure sale postponement, if
applicable.2
Fast decisions –
Within 10 business days once an offer is
submitted.3
46
1 Subject to approval2 Subject to specific conditions3 This timeline might increase if investor approval is required.
Process Overview
47
Eligibility & Initiation
Qualify the Borrower
Determine FMV
Market the Property
Submit Offer & Req’d Docs
Investor Decisioning
Closing
Getting Started
Marketing & Selling
Closing the Deal
Getting Started
Determine Short
Sale Eligibility
48
Getting Started
Determine Short
Sale Eligibility
49
Getting Started
Determine Short
Sale Eligibility
50
Getting Started
Determine Short
Sale Eligibility
51
Getting Started
Determine Short
Sale Eligibility
52
Getting Started
1.
Initiate Short Sale with CitiMortgage
Homeowners Assistance Team (HAT) at (866)‐272‐4749.
Account number.
Borrower Social Security Number (SSN).
Borrower(s) first and last name.
Letter of Authorization (LOA).
Borrowers Financials.
53
Getting Started
2.
Qualify the Borrower
Homeowner Support Specialist Hotline (HOSS)
(855) 843‐2549
54
Fixed 1st & 2nd Lien Fax: 866-940-8125Email: [email protected]
Home Equity Line of Credit Fax: 866-989-1356Email: [email protected]
OneMainFinancial or CitiFinancial* Fax: 800-925-6751Email: [email protected]
Getting Started
2. Qualify the
Borrower
55
Getting Started
3.
Determine Fair
Market Value
56
Marketing & Selling
4. Market the
property
57
Marketing & Selling
5. Submit offer,
HUD1,
Addendums, etc
58
Closing the Deal
6. Investor Decision
Come to an agreement
on the terms of the offer
and determine the
closing date.
59
Closing the Deal
7.
Closing
60
www.homeownersupport.com
61
www.homeownersupport.com
62
Key Numbers [email protected]
Short Sale Hotline 1‐866‐520‐5499
Homeowners Assistance Team (HAT) at (866)‐272‐4749
Homeowner Support Specialist Hotline (HOSS) (855) 843‐2549
Fixed 1st
& 2nd
Lien Fax: 866‐940‐8125
Email: [email protected]
Home Equity Line of Credit Fax: 866‐989‐1356
Email: [email protected]
OneMainFinancial
or CitiFinancial* Fax:
800‐925‐6751
Email: [email protected]
63
Information to Help You and Your Clients in the Short Sale Process
Understanding Short Sales
Understanding Short Sales
65
Three Key Steps for Real Estate Agents
11Engage Homeowners Early• Find out if the homeowner owes more than the home’s fair market value.• Discuss short sale opportunities during initial conversations with the homeowner.
– If the homeowner would like to better understand their options or initiate the short sale themselves, encourage them to call Customer Care at 1.866.880.1232.
• Explain the short sale process and how it can help avoid foreclosure.
22Contact Bank of America Before the Home Is Listed• Initiate the short sale in Equator – even if you don’t yet have an offer.
– The homeowner may be required to contact Customer Care to discuss participation in one of our pre-offer programs, such as HAFA. If the homeowner isn’t eligible for a pre-offer program, then next action is to market the home, obtain an offer and initiate new short sale in Equator.
33Complete Required Tasks on Time• Make sure all tasks are completed as soon as possible in Equator. • Provide necessary documents as soon as possible to keep the process moving
forward.• Communicate with your short sale specialist via Equator to reduce delays.
Short Sale Overview
66
You get a huge timeline benefit by completing steps in advance of your offer.
Initiating before offer…
Initiating after offer…
InitiationInitiation Borrower Outreach Borrower Outreach
Document Collection Document Collection ValuationValuation MarketingMarketing Offer
Analysis Offer
Analysis ClosingClosing
Decision in 10
Days!*
Program EligibilityReview
Collect Homeowner Documents
Determine Home
Value & Sign
Program Agreement
List Home For Sale
Submit Offer
InitiationInitiation Borrower Outreach Borrower Outreach
Document Collection Document Collection ValuationValuation Offer
Analysis Offer
Analysis ClosingClosing
Negotiate Offer,
Submit to Investor,
Renegotiate
Determine Home Value
HAFA Interest?
Collect Documents
* HAFA only. For other pre-offer programs, the time may vary.
Short Sale Tips
67
Getting Answers to Short Sale Questions
11Your short sale specialist• Send a message via Equator by selecting the negotiator (or closing officer)
in the "To" field and providing details of your issue. • You should receive a response within two business days.
If there's been no answer after that time, you can contact...
22The short sale team lead• Send a message via Equator to explain your issue. You can select the team lead
from the drop-down menu in the "To" field when composing an Equator message. • Allow two business days for a response.
If you still do not have an answer, you can call...
33Short Sale Customer Care• Call 1.866.880.1232 to explain your issue.
• Short Sale Customer Care is available Monday – Friday 8 a.m. to 10 p.m., and Saturday 9 a.m. - 5:30 p.m. Eastern.
If you have an urgent request, such as a foreclosure sale date within 48 hours, please call Customer Care at any point in the process.
How can I learn more about short sales?
Short Sale Agent Resource Centerbankofamerica.com/shortsaleagent
• Important news and updates about the short sale process and enhancements
• Online subscriptions to keep you informed via email updates
• Free webinar replays• Education library of important
documents, including tips to a successful short sale
• Events • Important links • Contact information
68
69December 2012 | Making Home Affordable
Discussion/Questions
U.S. Department of the TreasuryHomeownership Preservation Office