The Government Goes Media on Foreclosure Alternatives

Get ready for an onslaught of public service announcements campaigning the “highly successful”  Making Home Affordable Program.  The Advertising Council in partnership with HUD and the U.S. Treasury have decided to join forces to raise public awareness and push the benefits of the government’s foreclosure prevention programs.   Over 33,000 media outlets across the country are tagged to push the program.

The HAMP program has not been a raging success.   In fact, nearly 521,000 trial modifications have been cancelled and over 60% of those have been trials for six months or more.  Only 398,000 borrowers have been converted from trial loan-mods to permanent workouts.  Over 45% of cancelled trials are now in a an alternate modification program offered by the servicers.  But, of those, at least 6% are still falling back into a 60+ day delinquency status.  There are no official HAFA stats to report, but it should be more successful overall then HAMP.

HAFA is a much more dignified option for HAMP failing borrowers who truly wanted to keep the home but couldn’t meet the requirements.  So far, our team has had only positive HAFA experiences.  We have a 50% listing conversion rate for HAFA notified sellers, the approved list prices seem to be within 3-5% of FMV, and the servicers are pushing the contracts through the review process speedily.  Actually, we had one list, go under contract in 2 days, and was approved by the servicer 21 days later.  The approval would have been faster if not for a stubborn subordinate lien that required friendly coercion.

The PSAs will encourage more homeowners to explore their foreclosure options.  They especially want to reach homeowners at risk of default who are still current on their mortgage payments and still eligible for a HAMP modification. The commercials will direct them to the .gov site or to a HUD counselor hotline.

In marketing for motivated sellers, consider promoting the options and benefits in the HAFA program.  Post articles and ads similar to the PSAs that provide sellers information, answers to their questions, and possible solutions will vest them to you as a short sale expert.

Currently the Proptrackr team is offering users Pre-Approve HAFA Eligible motivated seller leads.  Be certain to fill out our HAFA survey to get a few more details.  Or go ahead and get started with these motivated HAFA seller leads with a Proptrackr  14 day trial.

Go to http://MakingHomeAffordable.gov/psa/about.html if you want to check out the coming public service announcements.

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The Government Goes Media on Foreclosure Alternatives is a post from: Short Sale Daily News

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