New foreclosure alternatives program

The U.S. Dept. of the Treasury recently announced the Home Affordable Foreclosure Alternatives Program (HAFA), which provides instructions for lenders and servicers participating in the Making Home Affordable Program and Home Affordable Modification Program (HAMP). The purpose of HAFA is to create an alternative to foreclosures for homeowners unable to successfully modify their troubled mortgage under HAMP.


The HAFA program simplifies and encourages short sales and deeds in lieu of foreclosure by:
.  Allowing pre-approved short sale terms before a property is listed;
.  Preventing servicers from attempting to reduce real estate commissions established in the listing
   agreement as a condition for short sale approval;
.  Releasing borrowers from future liability for the debt; and
.  Providing financial incentives to borrowers, servicers, and investors.

Borrowers not eligible for HAMP must be considered for HAFA within 30 calendar days of the date the borrower does not qualify for a HAMP Trial Period Plan; does not successfully complete a HAMP Trial Period Plan; is delinquent on a HAMP modification by missing at least two consecutive payments; or requests a short sale or DIL.

HAFA begins April 5, 2010, though servicers may choose to implement it earlier. The Directive from the Treasury only is for non-Fannie Mae or Freddie Mac owned loans up to $729,750.

More info: http://www.car.org/governmentalaffairs/federal/ustreasuryfap/

Jenner Headlands deal completed

A consortium of public agencies and private land conservation groups has completed a $36 million purchase of the Jenner Headlands, a sprawling 5,630-acre ranch at the mouth of the Russian River.

Escrow on the complex transaction closed Thursday.

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