Definitions Flashcards
Short sale
A short sale occurs when,
(1) A home owner sells their home,
(2) The proceeds of the sale are not sufficient to pay off the mortgage liens,
(3) The seller does not have the funds to bring to closing.
I successful short sale transaction includes all lienholders accepting less than what is owed to them.
Distressed properties
Distressed properties are properties that are available for sale because of financial hardship on the part of the current or previous owner
(REO)
Real estate owned, or REO for short, describes property that the bank comes to own because the borrower defaulted or could not financially afford to remain in the property, and efforts to sell the property-either at the short sale stage or at the foreclosure sale-were unsuccessful
Home affordable foreclosure alternatives (HAFA)
The affordable foreclosure alternatives (HAFA) program is a U.S. treasury short-sale program that offers homeowners, their mortgage servicer’s, and investors an incentive for completing a short sale. The goals of the HAFA are to streamline the hardship, qualifying process and to expedite the short-sale transaction.
Home affordable refinance program (HARP)
The Home affordable refinance program (HARP) is a U.S. Treasury loan refinance program designed for homeowners who are struggling to make their payments, are not behind with their payments, and have been unable to refinance their mortgage because their property value has declined. The refinance program requires a full underwriting and loan process.
Home affordable modification program (HAMP)
The home affordable modification program (HAMP) is a U.S. treasury loan modification program that allows borrowers to modify their current loans to help them stay out of the fall. The borrowers must be employed and have the ability to repay the newly constructed loan payments. Depending on the homeowners financial situation, some modifications are done on a temporary basis and Many on a trial basis before they become permanent modifications.
Notice of sale
If, after receiving the notice of default (NOD), The borrower does not, or is unable to, reinstate the loan, a notice of sale is recorded. The notice of sale explains when and where the foreclosure sale will be held.
