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Permalink Reply by Enrique Vasquez-Plaza on August 16, 2011 at 2:29pm

Hello Joe.

 

Excellent question.  

HAFA denial by itself can mean many different things regarding the continuance of the process itself.  If the seller submitted a HAFA request as his main purpose, he may have to start from scratch (if servicer guidelines require it) or the servicer may switch the request for regular short sale and proceed with the package that was already submitted (it is probable that at this point an offer is on the table  and even a  BPO or valuation was already perform and a listing price given) So it should not take too long (in the event this is the case).

 

BUT, it all depends on the agent working the SS, the lender involved and the investor.  Also, when we do HAFA, we do not present offers in the first place, because the offers are presented after the lender determines the listing price (time to go list the property and get the buyer)  Some lenders like OWB (indymac) requires not to list the property and not to have offers until HAFA pricing is approved.  Then, you go get the buyer and offer.  If you start with the offer and you present it to the bank, they will deny HAFA and proceed with the short sale in a "regular format" or "regular short sale".

Other banks like chase, will take your HAFA request with the offer and the buyer.  But it varies from lender to lender, regarless of the clear Treasury guidelines.

 

So to get to the bottom of this, YOUR AGENT (BTW, where is your agent?) should ask the other agent what is going on?  Who the lender is? Who the investor is? (they may/may not know this)  When did the process started? When was your offer submitted?  Was the seller expecting the 3K for relocation assistance that HAFA provides? (this itself may kill the deal, since usually in a regular short sale seller do not get 3K for relocation) Is there a negotiator assigned?  Is the negotiator giving an expected timeframe?  What about a second lien? Is there any? If so, is it approved?

 

All this questions should be asked by your agent on day 1.  It is better to be ready to wait 120 days for something you want, to wait for 120 days for nothing...  

 

Finally, what is the attorney doing? Mnmm.. probably he got paid already...

 

I hope this helps.  Good luck.

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Permalink Reply by Becky Martin on August 17, 2011 at 3:02am

Sorry but you are probably at ground zero again depending on the lender...no time tables in short sales....and all the questions below should be answered by the other agent:)

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