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New HAFA Initiative

Does anyone think that the new HAFA guidelines will be helpful in expediting short sales?

Permalink Reply by Steele V. Propp on February 3, 2010 at 10:27am: This is getting very mixed reviews. NAR has a video on their site given impressions both good and bad. It does sound like a number of the banks have signed onto the program and are saying that they will be using it as the guidelines go into effect on April 5th.

The ringer in many short sale situations will be secondary liens. With a cap of $3,000 and not allowed to pursue deficiency judgements I find it hard to believe many will go along. And it is totally voluntary for them.

Personally I think many of the guidelines are what we as Realtors want to hear. But I don't know if all of them are realistic in the present environment. Especially the response to an offer in 10 days. I think that is unrealistic from a lender perspective.

So what might be the majority of answers? "No."

We'll see. At the risk of being skeptical, why would this program work any better than the rest the goverment has come up with? Lots of talk and little success.; ▶ Reply to This

Permalink Reply by Kent Dills on February 3, 2010 at 10:29am: Stephanie, From what I've read and heard, the HAFA guidelines sound like they are well-intentioned; but, my relatives came for the "show me" state of Missouri - and I'm a bit of a pragmatist myself - so....I'll believe it when I see it!; ▶ Reply to This

Permalink Reply by Katerina Gasset on February 3, 2010 at 12:30pm: No, no and no again. You can read my series of analyzing the HAFA program on my blog.; ▶ Reply to This

Permalink Reply by Tracey Martin on February 3, 2010 at 1:49pm: It sounds good but I have a few concerns. It sounds like paying back property taxes will become the sellers responsibility since providing clear title is the seller's responsibility. Senior lien aren't mentioned at all. The other problem is that most juniors want more than $3000.00. So, if there is one loan and taxes are current, it sounds like it will be a major improvement to what is happening now. We can only hope.; ▶ Reply to This

Permalink Reply by Heidi Griffith on February 3, 2010 at 1:51pm: Stephanie,
I agree with everyone else here... Sounds good on paper though, doesn't it?! Would love to see a program that actually works put into place, but with all of the "what ifs" don't know if we'll every get that...

The government has great intentions, sure- but like another person said, I just can't wait until I hear the response from a second about the $3000 cap...; ▶ Reply to This

Permalink Reply by Heidi Griffith on February 3, 2010 at 1:52pm: Oh, and Katerina, I read the blog series and think your pretty dead on girl... Definitely a read for those who are not familiar with the program!; ▶ Reply to This

Permalink Reply by Stephanie Hofman on February 3, 2010 at 4:49pm: Thanks to all of you for your great replies and relevant points! I guess the old addage: "If it's too good to be true..." applies here!; ▶ Reply to This

Permalink Reply by Rosemary Brooks on February 4, 2010 at 8:44pm: I have read the comments that you have received on this good subject. Good question.

My thoughts, hopes and belief is that it will help. I believe that the program is set up to help and I am one of those that say "we can't call it" right now so why put a negative spin on it. And isn't any new plan better than what we have right now - which is totally messed up?; ▶ Reply to This