Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on January 10, 2011 at 10:02am

Tni,

 

Yes, I just closed one exactly like this - Although SB931 is in effect, my understanding is that it only applies to the FIRST mortgage - Is there more than one loan on this property?

 

My client opted out of HAFA beacause he had already BK'd.

 

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Tni LeBlanc (805) 878-9879 on January 10, 2011 at 10:03am

Just one loan. 

Thom Colby said:

Tni,

 

Yes, I just closed one exactly like this - Although SB931 is in effect, my understanding is that it only applies to the FIRST mortgage - Is there more than one loan on this property?

 

My client opted out of HAFA beacause he had already BK'd.

 

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Tiffany Cloud on January 10, 2011 at 12:58pm

I just had a similiar situation last month in Arizona.  My clients were contacted by BofA and asked if they wanted to be in HAFA and they said no.  BofA put them in the program anyway (after the file was already in the negotiation phase...just like yours).  Nothing happened on the file for 2 weeks and when I inquired, I was told they had been put into the HAFA program and essentially my negotiator couldn't touch it anymore.  They made my client call in, made the same threats to them about not waiving deficiency.  

 

What ticked my clients off, was that even after they had opted out, BofA put them in anyways and it added 2 weeks to our time.

 

Have you seen the latest stats of HAFA success?  634 closings NATIONALLY in the first 6 months?  If you averaged it out, that is just under 2 successful HAFA closings per state per month.... Not really a viable solution for most people in reality is it?

 

http://www.housingwire.com/2010/12/14/panel-finds-treasury-spent-4-...

Permalink Reply by Tni LeBlanc (805) 878-9879 on January 10, 2011 at 1:27pm

Tiffany - Interesting.  What is the situation in AZ like for deficiencies?  Are you anti-deficiency on foreclosure and short sale?  I think we are the only one that is anti deficiency for shorts now (on 1st mortgages).  That ploy would be very effective in other states.

 

Yes, I'm not too excited about HAFA anymore since no one seems to be abiding by the timelines and it is adding to the paperwork and delay in some cases.  And, I don't want them thrown into a bureaucratic morass.  This short sale can close so we need to close it!

Just no clue why they are doing this.  I know they have to have an angle!

Permalink Reply by Steve Early on January 17, 2011 at 9:07am

I wonder if the government might not be pressuring them to increase their HAFA numbers. The number of successful HAFA short sales that have been concluded since program inception is dismal! I recently read that it was somewhere between 600 and 700 HAFA short sales from all lenders!