Home Foreclosure Help – Home Affordable Foreclosures Alternatives
home foreclosures
Home Affordable Foreclosures Alternatives, or HAFA, went into effect April 5. HAFA encourages short sales to avoid home foreclosures.
Under HAFA, banks must decide within 10 business days whether to approve or deny a requested short sale under the program. Banks already have an inventory of 1.1 million foreclosed houses, recent estimates by LPS Applied Analytics of Jacksonville, Fla., show. Many more will be heading for a short sale or foreclosure. The Mortgage Bankers Association said more than 9 percent of homeowners were behind at least one payment on their mortgages in the fourth quarter. LPS figures 4.8 million are delinquent or already in the start of the foreclosure process. The HAFA program can t reach many of those houses. Lenders participating in the federal government’s effort to encourage mortgage relief for distressed homeowners.
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California Mechanic’s Liens New Law
The California Constitution gives workers the right to record a mechanic’s lien for the value of labor and materials provided for the improvement of real property prior to filing an action against the owner of the property.
AB 457 (effective Jan. 1, 2011) requires that a mechanic’s lien and Notice of Mechanic’s lien must now be served on the owner of the property (or on the construction lender or the original contractor if those parties cannot be served). If it is not properly served, as described in the statue, the lien is unenforceable.
This law also requires a proof of service affidavit to be completed and signed by the person serving the Notice of Mechanic’s Lien.
In addition, after the filing of the complaint to foreclose on the mechanic’s lien, the notice of the pendency of the proceedings (e.g., lis pendens) must be recorded no more than 20 days after the filing of the mechanic’s lien foreclosure action. Only from the time of recording the lis pendens will a purchaser or encumbrancer of the property be deemed to have constructive notice of the pendency of the actions.