NOPE. Lender must comply with HAFA guidelines, and HAFA guidelines prohibits from sharing or slicing any approved fee amounts, they are VERY strict on this. They wouldnt even let me contribute 500 toward a second taht wanted 6500 , after HAFA was granting 6000 only.
Also, I am 100% confident that even if the guidelines would allow it, the lender will grant the 3K to go to the buyer. HAFA was designed to help seller, not buyers!
Any updates on this from members on this? I have a HAFA transaction with Wells Fargo and the buyer's closing costs have been so dramatically reduced they cannot close. We are looking for a way to tip them over the edge and the brokers have already voluntarily agreed to a 5% commission. Could the sellers contribute part of their $3000 HAFA incentive?
Thanks in advance, Superstars!
I don't think so. Buyer may have to live with less reduced closing costs to get the sale through. Why are closing costs so reduced anyway?
Yes! There was a supplemental directive issued on 8/9/11 by MHA that very specifically says the relocation incentive can be used to pay transaction costs among some other interesting changes and clarifications. It looks like MHA is trying to resolve HAFA loopholes. Of course, I am sure that the loan servicers will find others but I think this one is significant.
The Directive is attached to this comment. I would love to hear some feedback about it.
Brenda - You are right. It looks although when I asked the question last Thursday (10/14/11) the answer was "No," but the new directive is very clear and I is now in effect as of 10/15! My original question was aimed at a Wells Fargo transaction where they have shaved through and cut concessions from 3% to 1%.
The directive is clear in that it must be showed as a credit to the buyer on the final HUD-1 and only for allowable costs. Great News! Thanks, Superstar!
Oh, my, how I love being right! It is my number one Short Sale Superstar Rule to NEVER, EVER assume the negotiator is right. Sometimes, I think it is just easier for them to say "no" than to work through the issues. Just sometimes. Thank you, Justin, for the update! I was hoping you would let me know.
I just got this in an email from Bank of America. You should forward it to your Negotiator at Wells Fargo!
It depends on the lender. Some lenders will allow the borrower to contribute part or all of their HAFA money and others will not. In our experience most lenders will not allow it.
I would advise you to read up on the HAFA guidelines at https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/svc1007.pdf to start. But bascially there is a max of 6,000 that can be contributed to junior liens for full waivers. If you are unable to get it done for 6k, then you would need to convert back to a traditional short sale.
In regards to the $3,000 that is for the seller and it is not to be used for other expenses. I am starting to have banks ask for copies of the incentive check to ensure that it goes to the sellers. www.shortsaleadvocate.cc.
I have one with Nationstar now that they told me to use the seller incentive to pay buyers closings costs, since we had no other way to do so and meet the net.