Seagrove Beach Short Sale Lot 15 San Juan Just Sold

Team Baranowski closed another successful short sale. This was an amazing lot in the heart of Seagrove Beach just a quick stroll to the beautiful emerald waters of the Gulf of Mexico. Located in Gulf Shore Manor on San Juan Avenue this lot has potential gulf views from a second story home and easy beach access to offer the ultimate in casual beach living.

This was a Regions Bank short sale. Lot 15 San Juan saw a peak value off over $700,000 and was a tough negotiation process with Regions and ultimately we were able to come to a win-win for everyone.

Call Craig Baranowski today at 850-259-1788, or search all the listings in the area by using our powerful MLS search engine.

Lots in Santa Rosa Beach

Santa Rosa Beach Distressed Properties

Santa Rosa Beach Homes Market Analysis and Market Snapshot

Offered at $175,000

Regions Bank Short Sale Successfully negotiated.

Team Baranowski is the leader in negotiating Regions Bank Short Sales. We had a 100% success rate with all of our Short Sales in 2009!

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale. Call Craig Baranowski at 850.259.1788 or email us @ info@teambaranowski.com.

Podcast 30A Radio – Dennis Fortenberry of NBI Properties as Featured Guest December 18 2009

Podcast #27 of Real Estate Round Up, South Walton’s Real Estate News hosted by Craig and Tracy Baranowski on 30A Radio. Weekly broadcast is at 9am CST on 107.1FM in beautiful Seaside Florida, visit www.30aradio.org for a complete program guide. Featured stories are Dennis Fortenberry of  NBI Properties talks about how Northwest Florida is poised for exponential commercial growth”, which as a result, this area has been coined as  “The last of the Great Frontiers in the United States of America”. 12 Viridian Way in WaterColor as our Luxury home spotlight of the week and a foreclosure in WaterColor 434 Western Lake Drive as our Distressed Property Spotlight of the week,  Celebrity Real  Estate News, South Walton Beach Homes Downsizing, Southwest’s Flights into Northwest Florida Beaches International Airport.

WaterColor Foreclosure 434 Western Lake Drive as Top Distressed Property Pick December 18 2009

WaterColor has been a hot development for 2009 with 76 homes sold so far in 2009! A home in WaterColor with views of Western Lake and the Gulf of Mexico is rare…under $2mil…very rare…a bank owned foreclosure with views of Western Lake and the Gulf of Mexico for $1.4Mil…AWESOME! 434 Western Lake Drive just came onto the market as a Bank Owned REO. This is the WaterColor Beach House great buy that you have been waiting for. Three of the four bedrooms have en suite baths. Rear access for parking, too many upgrades to list so I will just mention the gourmet kitchen, lookout with bar, stone and brick wood burning fireplace, over sized bedrooms, 12 foot ceilings, breakfast nook, intercom, sound system, crushed ice maker and of course all of the amenities available in Watercolor! This is a must see, not your typical foreclosure. It is immaculate!!

WaterColor Foreclosure 434 Western Lake Drive

Homes in WaterColor

WaterColor Homes Market Snapshot and Analysis

Built in 2005 3,366 sqft 4 bedrooms 4 full and 1half bath. 434 Western Lake Drive in WaterColor is currently offered for $1.4 million If you are interested in this distressed home in WaterColor or would like to preview other homes in WaterSound Beach. Please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

A New Rail System Coming to the Beaches of South Walton?

Some exciting news that we will need to keep a close eye on. With the continued strategic expansion of South Walton Beach’s infrastructure and the new addition of our much anticipated Northwest Florida’s Beaches International Airport, we are going to keep looking for ways to improve infrastructure and transportation in Northwest Florida.

So are we getting a new rail system in Northwest Florida? Not yet, but there are strategic plans and initiatives to do a Statewide high speed rail system. Read the story below to find out more.

Governor signs bill expanding passenger rail

TALLAHASSEE, Fla. – Dec. 17, 2009 – Gov. Charlie Crist today signed House Bill 1B, historic legislation passed during the recent special session. The bill establishes a comprehensive framework for Florida’s current and future passenger rail system, which today includes SunRail, Tri-Rail and plans for high-speed rail.

“Future generations of Floridians will look on this day as a bold step toward modernizing how residents and visitors will travel in our state,” Crist said. “Individuals and businesses from North Florida to South Florida will benefit from the economic and job opportunities that will arise along each of the rail corridors. Together, we move the Sunshine State into a new era of collaboration and innovation.”

Crist traveled the state to highlight the job-creation and economic-development opportunities the legislation would generate in visits to Tampa, Orlando and Fort Lauderdale – three communities that will directly benefit from the passenger rail projects.

The primary components of House Bill 1B include the following:

• SunRail – The Florida Department of Transportation (FDOT) is working with the federal government and Central Florida officials to develop and operate SunRail, a commuter rail transit project that will run along a 61-mile stretch of existing rail freight tracks in Orange, Seminole, Volusia and Osceola counties. The legislation authorizes FDOT to complete the purchase of the Central Florida Rail Corridor once the Federal Transit Administration has established a full-funding grant agreement.

• Tri-Rail – The legislation provides additional funding for Tri-Rail, which currently operates 50 trains daily from Palm Beach County to Miami-Dade County. The operator of the passenger line, South Florida Regional Transportation Authority (SFRTA), announced in April 2009 that it was in danger of significant service reductions without additional resources.

• Florida Statewide Rail Commission and Florida Rail Enterprise – The legislation creates the Florida Statewide Rail Commission to advise the FDOT and the Legislature on the development and operation of Florida’s passenger rail systems. In addition, it creates the Florida Rail Enterprise within FDOT to oversee all state-owned passenger rail systems. The legislation addresses liability risks associated with state-owned passenger rail corridors and requires FDOT to work with communities affected by increased freight rail traffic resulting from routing modifications.

For more information about Florida’s use of the federal recovery dollars made available through the federal American Recovery and Reinvestment Act of 2009, go to: www.FlaRecovery.com.

Governor Christ signed a

Is a 203K Mortgage Right For You to Buy Your Dream Home?

With more and more distressed properties hitting the market, mortgage lenders, including Wells Fargo, increasingly offer FHA Section 203k mortgages. The loans finance both home purchases and residential improvements, allowing buyers to purchase dwellings with possibilities and transform them into dream homes.

In many instances, homes are in prime locales but need some work; and experts say the 203k mortgage program lets average buyers snap them up.

What is the minimum amount of repairs required on a FHA 203k home improvement loan?

There is a minimum $5,000 requirement of eligible home improvement loan projects on the existing structure of the property. Minor or cosmetic repairs may be included after meeting the first $5,000 worth of repairs.

What are some of the repairs that qualify for the first $5,000?

•    Structural alterations and reconstruction: (Repair or replacement of structural damage, chimney repair, additions to the structure, installation of additional bath(s), skylights, finished attics and/or basements, repair of termite damage and the treatment against termites)
•    Elimination of health and safety hazards.
•    Changes for aesthetic appeal:(New siding, adding a dormer, covered porch, attached garage).
•    Air Conditioning or replacement: (plumbing, heating, air conditioning and electrical systems).
•    Installation of well, septic system or connection to public utilities.
•    Roofing, Gutter Downspouts, Flooring, Tiling and carpeting.
•    Major landscape and site improvement
•    Improvements to improve accessibility and functions for the disabled.

What are the qualifications to be able to obtain a FHA 203-k loan?

The qualifications requirements are the same as a typical FHA mortgage loan. The only additional item that the borrower needs is either enough cash reserved to pay for materials and labor until they are reimbursed through a draw, or a credit card with an adequate available balance. If there is to be a contractor involved, the contractor may choose to cover these costs.

The interest rate on a typical FHA 203k mortgage loan is a little higher than a standard FHA or conventional 30/15-year fixed-rate loan. The cash requirements are the same as an FHA loan, 3 percent to 5 percent, which is less than a typical conventional loan. There are a couple of additional fees which pertain to the construction aspects of the FHA 203k loan.

‘Cash for Caulking’ – Are You Serious?

Yes you read that right…”Cash For Caulking”. I do my best to comment on the news without a political bias. But seriously…”Cash for Caulking?” What’s next “Cash for Tires” or “Cash for Shoes”. I always thought that if you built a great product for a competitive price it will sell and the market will force innovation and change. Why do we need to throw $12,000 more dollars towards something that will save only a few hundred dollars a year in energy savings?

President Obama proposed a program last Tuesday that would reimburse homeowners for installing energy-efficient appliances, windows and insulation.

Under what has been dubbed “Cash for Caulking,” homeowners would get a 50 percent rebate on items like energy-efficient air conditioners, heating systems, washing machines and dryers, refrigerators, replacement windows, and insulation up to $12,000, meaning a household could spend $24,000 and get $12,000 back. There will likely be no income restrictions.

Steve Nadel, director at the American Council for an Energy-Efficient Economy, who is helping to craft the legislation, says they are contemplating having contractors or retailers pay part of the cost upfront to ease the need for homeowners to come up with lots of cash.

South Walton Beach Residential Lot Prices Coming Back to Reality

I remember the news headlines back in 2004, “It’s Like Winning the Lottery!” This article made me think of a very similar article I read about the dot.com boom in Silicon Valley right before the company I worked for restated their earnings and our CEO lost $6.3 Billion in one day. The return on investment for land in South Walton Beach was too good to be true…and with all things that are too good to be true…reality comes crashing at you hard when it finally hits.

The Real Estate industry has experienced a rough few years after the Real Estate Boom and we have seen home prices in the Scenic 30A area decrease as much as 58% in some areas. During the boom land development in South Walton Beach became the chic thing to do and the quickest path to becoming an instant millionaire. People were subdividing large parcels of land in droves and pushing through development orders to get the projects marketed and sold as quickly as possible. This giant surge of residential lots filled the South Walton Beach area with an incredible amount of excess residential land inventory.

I run a monthly analysis on residential homes and land in South Walton Beach and I remember sending one of my customers a report in February of 2009 that showed there were 4,390 Residential Lots in the Emerald Coast MLS with a paltry 14 contingent properties, 52 pending and only 69 sold since December 2008! The numbers have improved some since February but not by much.

In February it was clear that we would be in for a wild ride with land prices over the next 18 months since land values had yet to decline to levels that were comparable to residential homes and condos.

If we compare residential lot inventory to Single Family Home inventory we see a very healthy volume of homes sold versus available inventory, where as residential lot sales are still stagnant. We are seeing lot prices adjust in some key areas on Scenic 30A and the amount of distressed residential lot sales has  increase 609% compared to 2008.

Scenic 30A Distressed Residential Land

Lots in Draper Lake Coastal Village

Lots in Forest Lakes

Lots in WaterColor

Lots in WaterSound

Lots in Seacrest Beach

Here is a break down of the numbers in the entire Emerald Coast MLS…however there are signs that residential lot prices in South Walton Beach are coming back down to reasonable levels.

If you are a troubled landowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This site, Craig Baranowski or Keller Williams Realty is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax adviser for more information.

WaterSound Beach Lake Front Home 189 Gulf Bridge Lane as Craig’s Top Distressed Property Pick for December 11 2009

WaterSound Foreclosure! Just Listed for $1.1 million! Call Craig for details @ 850-259-1788 or email me @  info@teambaranowski.com.

WaterSound Beach continues to be one of my favorite developments along Scenic Highway 30-A. The architecture of the homes in WaterSound Beach reminds me of Martha's Vinyard with a Florida Coastal twist. WaterSound Beach's 1 mile of pristine white sand beaches, exclusive Beach Club and other luxury amenities keeps this hot spot as top favorite of mine. Home prices in WaterSound Beach have taken a beating during the Real Estate crash and have created some amazing great buys in this exclusive development. This week we are going to take a look at a lake front home in WaterSound Beach 189 Gulf Bridge Lane.

WaterSound Beach Lake Front Home 189 Gulf Bridge Lane

Homes  in WaterSound Beach

Condos in WaterSound Beach

WaterSound Beach Market Analysis and Market Snapshot

189 Gulf Bridge Lane is a brand new coastal residence in WaterSound Bridges with breathtaking panoramic views of Camp Creek Lake and the Gulf of Mexico!  This exquisite home is designed with a spacious open floor plan, vaulted ceilings, hardwood floors, a gourmet kitchen with granite counter tops and stainless steel appliances. The home was thoughtfully planned to take advantage of the gorgeous views and to maximize outdoor living by incorporating large wrap around balconies, a screened BBQ summer kitchen and an outdoor fireplace atrium constructed with detailed architectural character and outstanding quality. This is a Short Sale in WaterSound Beach. Built in 2008 2,687 sqft 4 bedrooms 5 full and 1half bath.189 Gulf Bridge Lane in WaterSound Beach is currently offered for $1.5 million If you are interested in this distressed home in WaterSound Beach or would like to preview other homes in WaterSound Beach. Please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

Driftwood Estates Short Sale Just Sold 462 Driftwood Point Road

This wonderful home just closed in Driftwood Estates in Santa Rosa Beach, Florida. It was a Bank of America Short Sale.

This four-bedroom, two-bath home had views of the Choctawahatchee Bay and sat on a large 0.5 acre lot.

Call Craig Baranowski today at 850-259-1788, or search all the listings in the area by using our powerful MLS search engine.

Homes in Driftwood Estates

Santa Rosa Beach Homes Market Analysis and Market Snapshot

Offered At: $259,000

Bank of America Short Sale Successfully negotiated.

Team Baranowski is the leader in negotiating Bank of America Short Sales. We have a 100% success ratio with Short Sales in 2009!

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com.

New Math Equation: HAMP + HARP + TARP = DUD

I recently read this great article on Zillow.com. It took a look at the Making Home Affordable programs and how they were intended to help millions of struggling homeowners. The only thing it appears it has done is spend hundreds of billions of tax payers money and frustrate thousands of people. What are your thoughts on the Making Home Affordable Program? Has it helped you?

It seems all that these programs are doing is spending money and delaying the inevitable…a giant wave of foreclosures.

Earlier this year, the Making Home Affordable program was unveiled to help 3.2 million struggling homeowners stay in their homes either through a loan modification or a refinance. Program names with easy-to-remember acronyms were created:

* HAMP — Home Affordable Modification Program. This is for people who are having a tough time paying their mortgage, perhaps because their interest rate has increased or they have less income.

* HARP — Home Affordable Refinance Program. This is for people who pay their mortgages on time but are not able to refinance through conventional means and therefore, cannot take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home.

To help support HAMP and HARP, TARP was created. The Troubled Asset Relief Program, or TARP, is a huge $700 billion bailout plan in which Congress infuses banks with hundreds of millions of dollars with the idea that banks will use these funds to do HAMP and HARP loans. Sounds easy enough.

So, what’s the problem?

Simply, it’s not working.  This week, government officials reported to the House Financial Services Committee that 70 percent of borrowers who have signed up are not getting help. Reasons?

* J.P. Morgan Chase says 29 percent of borrowers it signed up for the program did not make their new, cheaper mortgage payments.
* Bank of America said that about 65,000 of the borrowers it has helped made initial payments as required, but 50,000 of them have either not submitted all of the required paperwork or show some discrepancy in the information — putting them at risk of losing the aid.

So, it sounds like borrowers are not getting their act together, right? Wrong, according to Richard H. Neiman, New York’s top bank regulator and a member of the Congressional Oversight Panel, who said:

“We have anecdotal evidence that consumers continue to face major issues with servicers such as JPMorgan Chase and Bank of America losing their documentation or not clearly explaining the modification process to begin with.”

Or, perhaps there’s some other reason lenders won’t modify your loan.

What’s next?

Some ideas tossed about include:

* Offering a program similar to one in Pennsylvania in which unemployed workers are given low-interest loans to pay their mortgages. Eligible borrowers can get loans up to $60,000 that can be repaid over an extended period with payments as low as $25 a month.
* Continue working to get borrowers out of trial modifications and into permanent modifications.
* Streamline the documentation process and create an online portal for tracking and submitting documents.
* Pass a mortgage “cram-down” bill that stalled in Congress earlier this year which would let federal judges lengthen mortgage terms, cut interest rates and reduce loan balances for homeowners in bankruptcy court, even if the lender objects. (Or, get really crazy and do something like this judge did in Long Island).

Unfortunately, time is ticking and these ideas cannot be implemented quickly enough to keep up with the looming deadlines for these trial modifications, the increasing unemployment rate and rise in foreclosures.

If you are a troubled landowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This site, Craig Baranowski or Keller Williams Realty is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax adviser for more information.

November Foreclosure Filings Fall 8%

We saw the number of homeowners on teh brink of foreclosure fall in November for the forth straight month. Mortgage companies continue to evaluate whether borrowers are eligible for help and thus artificially slowing down foreclosures.

Nearly 307,000 households, or one in every 417 homes, received a foreclosure-related notice in November, down 8 percent from a month earlier, RealtyTrac Inc. said Thursday. Banks repossessed about 77,000 homes last month, down slightly from October.

Millions of borrowers are still being evaluated for the Obama administration’s foreclosure prevention effort. States are also trying to delay the foreclosure process, temporarily lowering foreclosure numbers.

But the foreclosure crisis is likely to get worse before it gets better. 2010 is going to be a bumpy ride!

Foreclosure filings were still up 18 percent from a year ago, and a new wave is expected next year as unemployment remains high and borrowers fall out of loan modification programs.

Nevada posted the nation’s highest foreclosure rate, followed by Florida, California, Arizona and Idaho. Rounding out the top 10 were Michigan, Illinois, Utah, Maryland and New Jersey.

Las Vegas, which had been No. 1 on that list for four-straight months, fell to No. 5. Nevada recently adopted a program that requires mediation before banks can seize a property.

Spending lots of money but where are the results?

Nationwide, a report Wednesday showed only about 10,000 homeowners received permanent loan modifications this fall under the Obama administration’s mortgage relief plan, more evidence of serious failings in the government’s effort.

Elizabeth Warren, chair of a watchdog panel, told reporters that the program is “not working” and that it had failed to make a dent in the record level of foreclosures. More than 14 percent of homeowners with a mortgage are either late on their payments or in foreclosure, and that number is expected to keep rising as unemployment remains stubbornly high.

The Treasury Department is expected to release updated figures Thursday, but data through October showed that fewer than 5 percent of homeowners who completed the trial periods had their mortgage payments permanently lowered to more affordable levels.

Under the program, eligible borrowers who are behind or at risk of default can have their mortgage interest rate reduced to as low as 2 percent for five years. They are given temporary modifications, which are supposed to become permanent after borrowers make three payments on time and complete the required paperwork, including proof of income and a hardship letter.

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This site, Craig Baranowski or Keller Williams Realty is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax adviser for more information.

Emerald Coast Real Estate iPhone App

Team Baranowski of Keller Williams Emerald Coast announces a FREE iPhone application to search properties along the Emerald Coast!

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With an extensive background in high tech software, Team Baranowski utilizes the latest technology to empower their customers to buy and sell Real Estate. “95% percent of our customers use the web and mobile technologies to research Real Estate during their buying and selling process. Our customers demand leading edge technologies to keep them up to date with current market trends. It is imperative that we empower our customers with the best technology solutions available”, said Craig Baranowski.

With this FREE iPhone application customers of Team Baranowski can search any property that is available in the Emerald Coast Multiple Listing Service and the Bay County Multiple Listing Service. “We empower our customers to do GPS location based searches from Pensacola all the way to Mexico Beach. A customer can be looking at a house for sale, bring up the Team Baranowski iPhone application and it will show them all the properties for sale in the area of their current location. They can research the properties from their iPhone and email the properties that they would like to preview.”

As a technology leader in Real Estate, Team Baranowski utilizes the latest in Web 2.0 standards, SEO optimization, Social Networking and advance listing syndication feeds to multiple web platforms including Realtor.com, Google Base, Trulia, Zillow, Homescape, Hotpads.com, Craig’s List, Twitter, Facebook, LinkedIn, Emerald Coast Homes Online, Keller Williams Listing Service and many others. Team Baranowski ensures their customers’ properties are marketed to millions of potential buyers on a daily basis and consistently receives tens of thousands of web hits a week on their websites, weekly newsletters, blogs and Real Estate Radio show.

“Our buyers and sellers are very savvy and their time is extremely valuable. We deliver the best tools and service possible and it is a key differentiator and value proposition for our team,” said Craig Baranowski.

Team Baranowski will be releasing a Mobile Real Estate application for the BlackBerry and Android in the next few months.

To learn more about Team Baranowski of Keller Williams Emerald Coast or download the iPhone application visit www.southwaltonluxuryhomes.com or www.distressedpropertyexpert.net.

Home in Retreat 143 St. Lucia Lane as Craig’s Top Distressed Property Pick December 4th, 2009

Back on the market for $3,300,000

This weeks top distressed property pick was a previous top luxury pick of ours in September 2009 and now it is a Short Sale! There have been some amazing multi-million dollar luxury home steals this year and this could be one of them. We saw 186 Banfill in Grayton Beach go under contract in a few days from it being a short sale. It was offered at $3.9Mil or $1mil under appraisal! This week’s Top Distressed Property pick brings us to one of St. Joe’s original Luxury developments along Scenic Highway 30A in the Retreat. This is a favorite development of mine as the serenity and seclusion of the property is unique to all other developments along Scenic Highway 30A. The Retreat is a top area for the ultimate in luxury homes in South Walton Beach. This home is amazing and can be purchased for a great deal!

Click Here to view 143 St. Lucia Lane in the Retreat Luxury Home MLS Listing

Most Expensive Distressed Waterfront Homes

Built in 2001 4,400 sqft, 4 bedrooms & 5 full and 1half bath. 143 St. Lucia Lane in the Retreat is currently offered for $4.29 million. Offer Price reduced to $3.33mil. If you are interested in this luxury home in the Retreat or would like to preview it. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com.

New Short Sale Guidelines Encourage Sweeping Changes to Short Sale Process

It has been a very long year fighting everyday to save homeowners from foreclosure. It is a daily challenge to push short sales efficiently and effectively through the short sale process. I have been actively involved in national short sale advocacy groups and we have been demanding changes to a broken short sale process. Two years ago when we started our first short sales, it was a difficult path of paving a road never traveled. As short sales become more prominent we saw changes and guidelines help streamline and encourage lenders to participate in foreclosure prevention programs under the Making Home Affordable Program or Home Affordable Alternatives Program (HAFA). These programs encouraged mortgage modifications and offered some incentives for shorts sales and deed in lieu of foreclosures. However, the program struggled to offer real solutions to an epic problem plaguing our country’s real estate market.

Today’s announcement by the Treasury Department is the next critical and potentially monumental step to making a difference in offering homeowners a real foreclosure alternative. With over 88% of our distressed inventory in Okaloosa, Walton and Bay County being short sales…this is a very significant and much needed change…or as I would call it the necessary lifeline to get through this current real estate crisis. The plan is designed to accelerate the necessary agreements between lenders, real estate agents, buyers and sellers.

Here is a quick break down of the new guidelines…will it change short sales overnight? No. But we have yet to see the bulk of short sales and 2010 will be an epic year for short sales and foreclosures!

The program’s official name is the Home Affordable Foreclosure Alternatives Program (HAFA), and it’s part of an existing initiative, the Home Affordable Modification Program (HAMP). HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which cover over half of all U.S. mortgages; however, Fannie and Freddie will issue their own versions of HAFA in coming weeks.

While HAFA’s goal is simple – increase the number of short sales and “deeds in lieu of foreclosure” by simplifying the process – the rules are complex, and it comes with 43 pages of guidelines and forms. Among other things, HAFA:

• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

• Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).

• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed.)

• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors.

The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on Dec. 31, 2012.

To qualify under the new guidelines:

• The property must be the homeowner’s principal residence.
• The homeowner is delinquent on the mortgage or default looks likely. Homeowner is insolvent.
• The loan was made before Jan. 1 this year and is less than $729,750
• The borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income.

Read the HAMP NEWS RELEASE

Read the complete 43 page SHORT SALE GUIDELINES

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This site, Craig Baranowski or Keller Williams Realty is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax adviser for more information.