A recent study by Amherst Securities stated that homes where the homeowner is at least 90 days in arrears on his mortgage payment has less than a 1% chance of catching up. 99% of these homes end up in foreclosure or a short sale. The state of Florida ranks #1 in the country in foreclosures and delinquency according to the Mortgage Bankers Association 2009 4th Quarter report.
The Obama Administration is urging participating servicers to follow through on short sales as an alternative to foreclosure for those homeowners that don’t qualify for a reworked mortgage under the the Home Affordable Modification Program (HAMP). Banks are now reaching out to their customers to help them save their home from foreclosure.
Steve Harney, one of the foremost experts in real estate in our country, gave his advice during a recent interview stating that banks have taken a softer approach in allowing homeowners to short sell their home with dignity, rather than walk away with a foreclosure on their recordthrough The Home Affordable Foreclosure Alternatives Program (HAFA).