Our seller sold under the HAFA program. Moved into a second property that they owned and then had additinoal hardships that forced a sale of the property. When we submitted to B of A they stated he was eligible for the HAFA program. Does anyone know if this is okay, legal, or a problem?
Thank you in advance
Here is a good link for the guidelines:
HAFA info starts on page 118. It doesn't say anything about not being able to do another one, though if there IS some rule about it, it would be a shame to spend the months and months it can take to do a HAFA and have them tell you in the end "oh sorry this doesn't qualify because they just did one". Banks are infamous for giving bad information so I would be cautious in taking what they say as doctrine.
One thing to think about and prepare your client for is the tax consequences they will be dealing with. If they just did a short sale on a principle residence they were probably eligible to have the loss considered non taxable, but unless they live in the current house for at least 2 years they are going to be liable for the short fall income. (This is just info I have received from my accountant, I am not giving tax advise, I am not qualified for that) I would encourage your client to discuss this with a competent tax professional so they know what tax consequences they will be facing. Good luck w/ it!