The Distressed Asset Stabilization Program

By
Real Estate Agent with Remax Excellence - Silver Spring, MD Maryland #318884

Secretary of Housing and Urban Development (HUD) Shaun Donovan and Federal Housing Administration (FHA) Commissioner Carol Galante announced the Distressed Asset Stabilization Program in a press conference last week.  This program is an expansion of an earlier pilot program.

The Distressed Asset Stabilization Program is designed to provide further assistance to struggling homeowners.  The program will sell large pools of delinquent FHA-insured loan notes to investors.  Once a note is purchased, the foreclosure will be delayed six months.  This will give the investor and borrower time to find a solution.

The investor will in turn work with the delinquent borrower to bring the loan current with a modification, or satisfy the debt through a short sale.  Either way, the objective is the same:  help the distressed homeowner.

This program will officially roll out in September, 2012, and will increase the number of loans available for purchase from 1,800 a year to up to 5,000 a quarter.  As with all programs, homeowners must meet certain criteria in order to have their loan note placed in this purchase pool.  First, the borrower must be at least six months delinquent and must not be in bankruptcy.  Second, the servicer must have exhausted all steps in FHA’s loss mitigation process and must have initiated foreclosure proceedings.

To protect the stability of the housing market, investors must hold onto the property for three years if they are unable to bring the loan out of default.  In addition, no more than half the loans purchased can result in REO properties. 

“There are going to be a set of options that might arrive on that doorstep as the best news that homeowner has ever heard after, frankly, they’ve probably gone through six months or more where they’ve tried a number of things and given up hope,” said Shaun Donovan. “So this will be another chance, another lifeline for these families that they certainly weren’t expecting.”

To learn more about foreclosure solutions and receive a free report about the Mortgage Debt Relief Act, contact Emcee Arah online or call 301.452.5252.  As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, Emcee Arah has made it his mission to know the best possible options available to distressed homeowners for both their present AND their future.  And you can trust that your free consultation will be completely confidential. 

 

 

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Ambassador
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Fernando Herboso - Broker for Maxus Realty Group
301-246-0001 Serving Maryland, DC and Northern VA
Maxus Realty Group - Broker 301-246-0001

Very happy that they are paying more attention to distressed homeowners

June 14, 2012 08:15 AM
Rainmaker
548,969
Than Maynard
Broker - Licensed to List & Sell - 405-990-8862
Coldwell Banker Heart of Oklahoma

Well, that is six more months for the house to be trashed out, neglected and run down and ignored. Typical government fix , a blanket approach. How cheap will a property have to go to get an investor interested if they must hold on to it for 3 years if they evict?

Each home should be viewed inside and out to determine if the property owner is actually maintaining it or are they just going for 6 more months of free or semi-free housing.

June 14, 2012 09:36 AM
Rainmaker
200,142
Dale Bledsoe
Realtor in Tracy, California
Crown Key Realty

Ronald Reagan said that the 10 scariest words in the English language are "I'm from the government and I am here to help". Programs like these simply make RR seem even wiser. Please, government, don't fix anything else. 

June 14, 2012 10:37 AM
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Emily Pearson

 

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June 14, 2012 07:41 PM
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Emcee M. Arah

Realtor w/Architectural Dimension, CRS, CDPE, CIAS
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