Seller got served with foreclosure notice, assumed that he needs to move. He moved 40 miles to a relative's house. In the meantime leased the house that's in foreclosure on month to month for survival money.

 

Does anyone know if this affects his HAFA eligibility? It's a FNMA loan.

The seller can move back if he needs to.

 

HAFA has a rule about relocating at least 100 miles for work purposes.

 

Any illumination will be appreciated. There just aren't enough case studies to go on yet.

 

Thanks

Dave Halpern

Louisville

(502) 664-7827

Views: 184

Replies to This Discussion

Did he also move for job purposes? If not, why not ask him to move back?

Kevin M. Lancaster - Willson - Realtor, SFR
SC License # 31391
Keller Williams Realty
700 Airport Rd.
Greenville, SC 29607
Office: (864) 234-7500
Voice: (864) 485-9283 call or text
Fax: (864) 968-1779
[email protected]
www.KevinSellsTheUpstate.com
Kevin,
He did not move for job purposes, actually he is only sporadically employed in the dwindling construction industry. Like many, he got scared when the sheriff served him. The paperwork scares and confuses many borrowers. He consulted with a lawyer and a Realtor. Neither told him that moving out could jeopordize his HAFA eligibilty.

He moved to a vacant house that belongs to a relative. He can move back home, but he would have to bump his tenant who's rent is now providing him some survival money.

Tough choices.

We're planning to call the lender on Monday to disclose everything and see what they say. Full disclosure. The problem is our experience is loss mit people don't have the knowledge, experience or authority to answer HAFA questions. The program is too new.

Kevin M. Lancaster - Willson said:
Did he also move for job purposes? If not, why not ask him to move back?

Kevin M. Lancaster - Willson - Realtor, SFR
SC License # 31391
Keller Williams Realty
700 Airport Rd.
Greenville, SC 29607
Office: (864) 234-7500
Voice: (864) 485-9283 call or text
Fax: (864) 968-1779
[email protected]
www.KevinSellsTheUpstate.com
One of the main HAFA guidelines is that the property has to be the primary residence. This doesnt mean he cant do a short sale, he just wont be able to participate in HAFA. What is worth more? Him moving back in and getting moving expenses in a few months or collecting rent for awhile. Good for you too being honest with the bank!!!
What I have been told is that the owners need to be physically sleeping there as the primary test. Since this is a new program with many kinks to be worked out, all other issues you mentioned are the exceptions and may be trouble for you. Personally, I would not take this one on unless the owners moved back.
Living in the home has been a requirement and on any that have moved out, well they were immediately disqualifed by the lender. Him moving back in also does not guarantee approval under HAFA......
The following paragraph is from the HAFA Supplemental Directive 09-09 Revised Dated: March 26, 2010

The property is the borrower’s principal residence, except that the property can be vacant up to 90 days prior to the date of the Short Sale Agreement.

If it has been over 90 days you're out of luck.

Ed Clments

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