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Foreclosures and REOs -
Overview HOPE 24 Hour HotLine1-888-995-HOPEFederal Foreclosure AssistanceHAMP Program Home Affordable Modification Program (HAMP) Under HAMP, lenders/servicers reduce monthly payments/modify home loans for eligible homeowners, so as to avoid foreclosure. To participate in HAMP, homeowners must be eligible: (1) the home must be the homeowner's principal residence; (2) the home must be encumbered by a first-lien mortgage/deed of trust; (3) the loan is seriously delinquent; (4) the unpaid balance of the loan must be less than $729,750; and (5) the mortgage payment is more than 31 percent of the homeowner's gross income. HAFA Program Home Affordable Foreclosure Alternatives (HAFA) HAFA provides incentives for lenders/servicers to allow short sales or deeds-in-lieu as positive options for eligible homeowners. HAFA is designed for homeowners who have applied to HAMP for assistance but have had no success with their loan modification program. To participate in HAFA, homeowners must still meet HAMP’s eligibility criteria (principal residence, first-lien mortgage, serious delinquency, unpaid balance under $729,750, and a mortgage payment over 31 percent of gross income). U.S. Department of Housing and Urban Development (HUD) Links: FHA (Federal Housing Administration) Avoiding Foreclosure (En Espanol) How To Avoid Foreclosure Brochure (pdf) Help For Homeowners Facing The Loss Of Their Home (En Espanol) Veterans Administration Links: (VA) – Trouble Making Payments Freddie Mac (FHLMC) Links: What if You Cannot Pay Your Mortgage? (En Espanol) Loan Servicer Hotline Numbers: http://www.yourhome.ca.gov/servicer_hotline.pdf Sacramento Area Foreclosure AssistanceHome Loan Counseling Center of Sacramento 2003 Howe Avenue, Suite 100 Sacramento, CA 95825 (916) 646-2005 NeighborWorks HomeOwnership Center 2400 Alhambra Boulevard Sacramento, CA 95817 (916) 452-5356, ext. 229 ByDesign Financial Solutions 4636 Watt Avenue, 2nd Floor North Highlands, CA 95660 (800) 750-2227 Senior Legal Hotline – Legal Services of Northern California 444 North Third Street, Suite 312 Sacramento, CA 95814 (916) 551-2140 Sacramento Mutual Housing Association (www.mutualhousing.com) 3451 Fifth Avenue Sacramento, CA 95817 (916) 453-8400, ext. 43 Loan Workout Assistance - Lender WebsitesBank of America Chase Bank CitiBank/CitiMortgage Union Bank Wells Fargo Bank BUYERS: PURCHASING AN REO PROPERTY FROM A BANK/LENDER  What's an REO? REO stands for "Real Estate Owned". These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you'll receive the property 100% "As Is". That could include existing liens and even current occupants that need to be evicted. A REO, by contrast, is a much cleanerť and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that REOs may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.
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