Okay, I’ve got to admit, it’s been one of those days, but I can’t stand by and not say what I’m thinking about this new “short sale” program. I’m already hearing a lot of Realtors and others saying, “This is great news!” Well, hold on a minute…..
I’m going to go through some of the main points of the HAMP Update that was issued yesterday and that our President spoke about today. You can find the entire thing at Hamp Update if you want to read it for yourself. If you want to read the entire directive, you can find that at Directive. The bold and italicized portions are quotes from the official documents. The regular print is my thoughts…….
Supplemental Directive 09-09 provides guidance to servicers
There’s the first clue that something’s not going to go well. It provides guidance.
The definition of guidance according to Wikipedia is: Advice (opinion), an opinion or recommendation offered as a guide to action, conduct.
See where the problem is? It’s guidance, it’s not mandatory. So, Uncle Sam can say, “Now, Mr. Banker, you really should do this……” And the Banker can say, “(Well, we really shouldn’t print that.)”
provides servicers with the option to determine the extent to which short sales or deeds-in-lieu will be offered under this program. (This is actually from the Directive).
It provides options. It allows the servicer to determine the extent to which they offer them under this program.
So, once again, what do we have? We have Uncle Sam saying, “Now, Mr. Banker, it would be really nice if you did this……” And the Banker can say, “____________________.”
The effective date of this Supplemental Directive is April 5, 2010.
Excuse me, but what the heck is the rush for? I mean, they rolled out the HASP refi program to lenders the day that they made it public to consumers so we were getting calls on it before we even knew what was what. Now they are giving the banks four months to decide whether they want to participate? Why not next Monday?
With either the HAFA short sale or DIL, the servicer may not Read more