Replies to This Discussion

Permalink Reply by justin.hanke on April 19, 2011 at 4:44pm

You should have received a HAFA approval letter saying how much to list it at and other specific details to your situation. If you need an example of what you should have received, I could probably send you an example with any personal information blacked out

Permalink Reply by Martin Dragnev on April 20, 2011 at 5:13am

I did and the language in it is "we offer you to participate" and Chase is asking for a standard HAFA program form that states "you are approved for the HAFA program". Thank you for your response.

justin.hanke said:

You should have received a HAFA approval letter saying how much to list it at and other specific details to your situation. If you need an example of what you should have received, I could probably send you an example with any personal information blacked out

Permalink Reply by justin.hanke on April 20, 2011 at 5:33am

The HAFA form I recieved from BofA said

We are pleased to inform you that you have qualified to participate in the federal government's Home Affordable Foreclosure Alternatives (HAFA) short sale program.

After you get an offer, you should submit the RASS and BofA will issue a specific approval you can use for buyer's lender funding. All BofA needs when you submit an offer is the buyer's preapproval.

Permalink Reply by Martin Dragnev on April 20, 2011 at 6:12am

Thanks Justin, I do currently have a full asking price offer in place with BOA and in order for them to approve they need Chase (the 2nd lien holder) to approve first. Chase on the other hand wants a official HAFA approval form which I can't find anywhere. I don't even know if it exists.

justin.hanke said:

The HAFA form I recieved from BofA said

We are pleased to inform you that you have qualified to participate in the federal government's Home Affordable Foreclosure Alternatives (HAFA) short sale program.

After you get an offer, you should submit the RASS and BofA will issue a specific approval you can use for buyer's lender funding. All BofA needs when you submit an offer is the buyer's preapproval.

Permalink Reply by justin.hanke on April 20, 2011 at 6:31am

I understand now. I just assumed Chase was the buyer's lender, not the 2nd lienholder. I didn't see that in the original post. I'll see what else I can find out....

Permalink Reply by justin.hanke on April 21, 2011 at 1:21am

Martin,

You can try to tell Chase that HAFA guidelines say

Title criteria The Servicer must review readily available information provided by the Borrower, the Borrower's credit report, the Mortgage file, the foreclosure file, if any, and other available sources to identify subordinate liens and other claims on title to the Mortgaged Premises to determine if the Borrower will be able to deliver clear, marketable title to a prospective purchaser or Freddie Mac. If the Servicer's review of the title information reveals a lien, claim, encumbrance or defect that prevents the Borrower from conveying clear, marketable title to the Mortgaged Premises that cannot be satisfied by payment to subordinate lien holders in accordance with Section D65.7 herein, or cannot be resolved without litigation or court order, then the Borrower is ineligible for a HAFA Short Sale or a HAFA Deed-in-Lieu.   So if they aren't willing to provide an approval that will satisfy the need for a clear, marketable title, then they may put a stop to this short sale, it could go to foreclosure and they would get nothing.   At the same time, you can tell BofA that there is nothing that would indicate "a lien, claim, encumbrance or defect that prevents the Borrower from conveying clear, marketable title to the Mortgaged Premises that cannot be satisfied by payment to subordinate lien holders." You don't have anything in writing but realistically speaking, I've never had a second lienholder turn anything down because they know they won't get anything if it goes to foreclosure. I had to work that angle with Wells Fargo before on a FHA HUD PFS and it worked.

Permalink Reply by Martin Dragnev on April 29, 2011 at 1:10pm

Thank you. I truly do appreciate it!

Permalink Reply by justin.hanke on April 30, 2011 at 4:19am

Did you find a way to make it work?