HAFA is of course a government-related program, so these things take forever to get off the ground. Just look at the HAMP program. We’ve only started seeing halfway decent monthly numbers on it in the last few months and it was created long before HAFA.

Your country needs you! Private market solutions are necessary to help the economy and housing market recover.

Clear Capital’s report shows prices have fallen 11.5 percent over the previous nine-month period. A rate of decline this rapid has not been seen since 2008.

All the major metropolitan statistical areas tracked in Clear Capital’s report showed quarter-over-quarter price declines. The company says it’s a “sign of the continued volatility and fragility of home prices.”

At the regional level, home prices in the West, Northeast, and South regions have all crossed into double dip territory to record their lowest prices since the downturn began.

A HUD spokesperson described the curtailment as “painful cuts” and said they “would not have been made in better circumstances.”

In many cases, local housing counseling agencies – approved and funded in part by HUD – are the only source of help for distressed homeowners.

The federal agency, state housing associations, and even some lawmakers themselves have touted such HUD-approved counselors as the go-to source for homeowners struggling to make their mortgage payments.

Their services are free and organizations working to educate borrowers about foreclosure relief scams position HUD-approved counselors as their strongest defense.

Approximately 2,000 of the 2,700 agencies in the housing counseling program receive grant funding either directly or indirectly. Most also receive training assistance through the program. Each housing organization in the program averages about three to four counselors per agency.

Over the past two years, HUD-approved housing counselors have helped more than 4 million families struggling to keep their home, according to the federal agency.

Those within the industry contend that the HUD funding provides much-needed assistance to struggling homeowners and that families across the country — and the housing recovery — could be severely impacted by its elimination.

According to a statement from a group of civil rights and advocacy organizations, including the National Council of La Raza, nonprofits providing these free, HUD-approved services will be forced to lay off skilled housing counseling staff and shut down counseling centers across the nation at a time when our housing crisis is at its peak.

Commenting on the funding cut, Faith Schwartz, executive director of HOPE NOW, said, “Housing counseling dollars remain critical to homeowners at risk…Housing counselors have a proven track record of success with regard to pre-purchase and foreclosure prevention counseling. Eliminating an important source of funding is concerning as industry and non-profit counselors have been working together to keep people in their homes.”

With HAMP, HAFA, and now grant money going away, the private sector is going to need to step up even more to address this housing crisis.

Unfortunately for mortgage companies, this is not a new trend, but one that TransUnion has been consistently finding in its surveys for the past three years. The only slight positive TransUnion could report is that the number of consumers current on credit cards, but delinquent on their mortgages had slightly declined. The number, however, is still more than 70% higher than at the start of what’s now being called the “Great Recession.”

“The percentage of consumers current on their credit card payments and delinquent on their mortgages first surpassed the percentage of consumers current on their mortgages and delinquent on credit cards in the Q1 2008,” the company said in a statement. “Although many industry analysts believed that a reversion to the conventional payment hierarchy would ensue once the recession had concluded, this has not been the case.”

Apparently, current economic and housing environment has consumers reevaluating their priorities.

In terms of cost, HAMP is far under the $30 billion estimate that the Treasury set aside, having spent only $1.2 billion so far. Guess that’s what happens when distressed homeowners can’t get banks to talk seriously about these government-sponsored loan modifications.

The bill now moves to the Democrat-controlled Senate, where it stands little chance of getting the votes needed to take HAMP off life-support. The bills will never make it out of the Senate and, even if they do, the President will veto. Can you say a HUGE and colossal waste of time? America, you’re paying for this Republican vs. Democrat chess match that should have ended in a stalemate a long, long time ago. The Republicans proposing these program closures know it’s a waste of time, they just want to CYA (cover their own asses) while still looking good to their constituency. That’s what American politics has become—CYA, clever sound bites, not doing anything to upset your voters and sticking with your party no matter what the issue.

Meanwhile, well over a million Realtors are somehow supposed to squeeze out a living, when first-time buyers are scared to death to commit to a 30-year loan, unemployment is high, mortgage approvals are extremely difficult to get, foreclosure rates are through the roof, property values refuse to stabilize with any certainty and an unknown amount of shadow inventory is lurking around the corner. And that doesn’t even take into account the negative affect on all the builders, construction workers, home inspectors, property appraisers and companies who make products for the home building industry.

So “thank you” to both Republicans and Democrats for doing essentially next to nothing of value to help America out of this recession. While you’re arguing and grand-standing, more Americans are losing their homes, their jobs, their medical insurance, and their belief in the American dream. You have done FAR more harm than good.

Treasury reports that as of the end of February, 4,488 homeowners completed a short sale or deed-in-lieu under the Home Affordable Foreclosure Alternatives (HAFA) program. The federal program provides up to $3,000 for relocation assistance after a homeowner exits the home.

Another 10,177 homeowners have agreements in place with their servicers for HAFA short sale transactions. Treasury notes in its report that the HAFA short sale timeline “lasts at least 120 days,” and requires the cooperation of junior lien holders in order to complete the transaction.

I suspect Bank of America CEO Brian Moynihan might be able to answer that as he now finds himself in that situation. Moynihan is not alone, however, as the lawsuit also names the board of directors and other bank executives.

Shareholders are claiming BofA leaders failed to disclose billions (yes, with a B) of dollars in hidden debt as well improperly recorded mortgages. The lawsuit was filed in a New York state court this week and covers the bank’s actions from January 20-October 19, 2010. Among other things, shareholders experienced a major decline in the value of the bank’s stocks. Plaintiffs are contending BofA stock lost nearly 42% of its value in 2010.

Bank of America had no comment when asked about the lawsuit. Or maybe, like Charlie Sheen, they can’t get a PR firm to stick with them. Hard to know but one thing is certain, BofA has had more bad press coverage than just about any of the other mega banks.

Another accusation in the shareholder suit is that BofA did not “have adequate personnel to process the large numbers of foreclosed loans in its portfolio.” Well, gee, that shouldn’t be too hard to prove! Just ask anyone who deals with short sales or REOs!

Shareholders shouldn’t have a lot of difficulty proving these accusations. It’s pretty sad when your own shareholders want to haul you into court!

The third-quarter underwater number rose from 22.5 percent in the second quarter and is the highest it’s been since Zillow began tracking negative equity in 2009. The subtle hints of stabilization in home values that started emerging earlier in the year began to wane last quarter.

With home values nationally 25 percent below their June 2006 peak, the current housing downturn is approaching Great Depression-era declines, when home values fell 25.9 percent in five years (between 1929 and 1933), Zillow pointed out in its report.

Home values fell from the second to the third quarter in 77 percent of markets covered in Zillow’s study. In five of those markets – the California metropolitan areas of Los Angeles, San Diego, San Francisco, San Jose, and Ventura – home values began to drop again after five consecutive quarters of increases.

Additionally, more than one-quarter (27.3 percent) of homes sold in September were sold for a loss, marking a near-peak level, Zillow reports. The peak was hit in February 2010, when 27.7 percent of homes sold went for a loss.

Part II – Michael Corradini

Part III – Michael introduces Panel Members and talks with Tony Constable

Part IV – Panel member Michael Shields

Part V – Panel member Faby Gonzalez

Part VI – Panel member Jim Abbott

Part VII – Short Sale Pros Broker of Record and Real Estate Attorney Spencer Lugash

Part VIII – Spencer Lugash continued..

Part IX – Jim Abbott speaks about Abbott Realty Group going exclusive with Short Sale Pros!

Part X – Guest speaker Greg Reid, Author of 3 Feet from Gold

Part XI – Greg Reid continued..

Part XII – Closing remarks – Meet the Company