I have been trying for months to get BofA to initiate a co-operative short sale for my buyer, but unfortunately we keep getting stuck in the HAFA nightmare. Originally after filing 3rd party auths way back in February I received a call from an escalation team member at BofA who recommended Co-op program and who told me to put it into HAFA and they would initiate the file in Equator. Well this was to be handled by AMS and after weeks of not getting any sense out of them, I called BofA again and they told me that it should be with UTLS for HAFA. I explained that the homeowner doesnt qualify on grounds of income and so they asked the h/o to call in and decline it. He did that. They then told me to initiate myself in Equator, which I did without an offer, messaging them that h/o wanted to be considered for CoOp program. I did this, and got stuck in the HAFA loop again with an auto response to get homeowner to call in. He called in again, the short sale file was declined on BofA advice and I was told to re-initiate without an offer and all would be well. Re-initiated and BANG back in the "Instruct Homeowner to call Bank of America because they may qualify for HAFA... Arrggggggggh!

When are BofA going to change Equator so we can initiate a Co-op Short Sale? Funny thing is - now I have two offers that came in today - so I will have to go traditional route anyway...... Unco-operative short sale route should I say.... Anyone had any luck with a co-op short sale in Equator or is that not possible?

Oh and how do I get out of the HAFA Loop?

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Ray,

I just went through the same scenario today myself. The servicer is BAC Home Loans and the investor is Fannie Mae. In January we applied for Fannie Mae HAFA. Four months later, the homeowner was turned down because her Debt-to-Income was 24.97% and not 31%. I still don't know how they came up with 24.97% and I can't find out the numbers they used. I had come up with 31.1%. Anyway, I then called BoA Short Sales and was told to list the property and initiate a short sale in Equator. So I did. Of course the first message I get is that the homeowner qualified for HAFA. I immediately replied to the message that the homeowner had been turned down for HAFA by Fannie Mae. I kept checking and after two weeks I hadn't received any response from Equator. I then saw something in one of the forums that led me to go direct to Fannie Mae's Resource Center for some help. Days later, I got an email saying to call the Fannie Mae Resource Center, which I did and was told the homeowner did not qualify for the Fannie Mae HAFA due to the Debt-to-income ratio. They then told me to call BoA Short Sales again.

 

When I called BoA and ask what was happening with the file I was told to have the homeowner call in and request a BOA traditional short sale. When the homeowner called in, she was told she qualified for HAFA.

 

So today I called into BoA short sales and got some real help. The gentleman explained that the homeowner could call in and request a BoA Co-Op Program and that all she had to do was answer 5-6 questions. I'd reached my limit by now so I called the homeowner and told her that I was going to have her on the phone with me while we got to the bottom of this. She agreed and we called BoA Short Sales and she told them that she wanted the BoA Co-Op program. She was asked some questions to verify her identy, and then we were told that we needed to call the BoA 8XX number. Again, I conferenced her in and we called the BoA Co-Op number. We talked to a nice gentleman there who told us he was with REDC Default Solutions. He explained the program but then mentioned that it was the Fannie Mae Co-Op program. I told him that we were calling in about the BoA Co-Op program so he then explained the differences. Basically the differences are the amount of money the homeowner gets for Relocation Expenses, the time to sell the home and one other thing I can't think of right now. Anyway, after hearing that, the homeowner wanted the best program for her which sounded like the BoA Co-Op program, So we called BoA and asked for the BoA Co-Op program. Again, the homeowner had to answer some questions and then we were told she didn't qualify for the BoA Co-Op program because it was a Fannie Mae loan.

 

Back to REDC Default Soultions to ask for the Fannie Mae Co-Op program since it was the only option available now. Again, answered some questions and was told the information would be presented to Fannie Mae and to call back on June 3 to find out the "verdict".

 

Each time, we were asked if the property had an offer or not. Each time we answered "No". In the meantime until June 3, I'm to email each week any activity we've had on the property i.e. calls, showings, open houses, any offers, price reductions, etc.

 

Hopefully, this info will help others who may be going through the same thing. It also seems that I'm put on hold a lot while they ask someone what to do, then they come back to me, and it sounds like some of them are being coached. On almost every call, we were told the homeowner was qualified for HAFA. I think a lot of the confusion is that there are so many HAFA programs and so many Co-Op programs.

Ray-- I had that happen a couple of weeks ago.  The homeowner called three times to say that he did't want to be considered for HAFA.  We still couldn't upload the offer to Equator after the first two calls.  The third time, while on the phone with a customer service rep, we got the seller on the phone at the same time.  Again, he told the service rep that he did not want to be considred for HAFA, and while we were all on the phone, the service rep re-set Equator to the file could be uploaded.  Good luck--Terry

 

I have my own, but put both your name and the company name on it.

Gary had a very good response, and here is a compliment to his advice.

 

The EQ system is programmed to scan loans for eligibility based on the basic requirements.. Foreclosure sale date, property units, balance requirements, when the mortgage was funded, etc, HOWEVER, Equator will NOT detect other issues that will cause your borrower to lose eligibility for HAFA, meaning things like bankruptcys, DTI ratios, will not be taken into consideration, nor will previous denials for HAFA change anything. You MUST advise of this.

 

This leaves you, the agent, or H/O to stop the "vicious cycle" of borrower outreach, by calling in WITH Your H/O on the line, and advise the bank that although Equator SHOWS eligibility, the H/O has already been through the process, and you know they cannot qualify. You may feel the rep your speaking to is this complete "idiot" because he is instructing you to have the borrower call again, but he is limited to the huge "Y" for eligibility on the Equator file, and unless the borrower specifically states they already have gone through the process only to be told they could not qualify, the reps MUST take this step ethically, as the banks are REGULATED by the Fed's to make sure they are promoting the Obama plan whenever it applies. 

 

Also, keep in mind alot of the time judgement calls are made by the reps and supervisors, as qualifications and guidelines DO change for these programs (guidelines were alleviated in February to allow more H/O's to qualify) so just because you state that the borrower wasnt eligible because of being told in January the loan is NOT eligible, who is to say they wont qualify now? Now if your HAFA file is declined on June 1st because of DTI requirments, and you call June 2nd in Borrower Outreach on the new file, it is possible to look at other options w/o the H/O calling simply because it is common sense that the H/O is not going to qualify a day later, however there would need to be some VERY clear and understandable notes from the HAFA team themselves as far as the denial from HAFA that would prove the borrower was NOT qualified. You would more than likely need to speak to a supervisor to make that exception though, as the frontline reps are not allowed to make that call themselves.

 

Hope this helps.

 

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