Replies to This Discussion

Permalink Reply by Cami Pinsak on January 21, 2011 at 5:52am

With the current HAFA program, there are stringent occupancy rules.  However, as of 2/1, new HAFA guidelines will be in place.  The seller has to have lived in the house within the last 12 months.  See if the lienholder will allow you to resubmit the application to take advantage of new guidelines.

Permalink Reply by Tni LeBlanc (805) 878-9879 on January 21, 2011 at 6:10am

Thanks for the reply Cami.  It was my understanding that even under the previous guidelines they would qualify as the home has never been rented and they initiated HAFA before they contemplated moving.  They are willing to waive the move out allowance they just want peace of mind.  Maybe waiting is the solution.  Tni

Permalink Reply by Wendy Smith on January 21, 2011 at 6:55am

Yes, Tri is correct - even with the old guidelines the seller may vacate but the timeframe is much shorter - 90 days I believe.

I've encounter MANY negotiators that fail to understand this part of the guideliens.

 

Heck, I have a job transfer HAFA and the negotiator tried to say the borrower wasn't eligible because he vacated.  Good Grief!

Permalink Reply by Cami Pinsak on January 21, 2011 at 7:06am

The old guidelines were 90 days, but then had to have an explanation or job transfer outside the area.  Lots of files from all banks were being declined for HAFA because the appraiser went and said it was vacant.  I had one declined because the tax returns showed a different address...

2/1 is just around the corner...lets hope these new guidelines help us all!

Permalink Reply by Tni LeBlanc (805) 878-9879 on January 21, 2011 at 7:46am

Interesting.   But they aren't even prompting people to give a letter of explanation.  Any idea what the acceptable "explanations" are under the old guidelines?  It was my understanding that "I want to move now" was an acceptable explanation.  I wish they would make up their mind first they seem like they want to push people into HAFA, then when they say OK, they work on pushing them out! 

Permalink Reply by Peggy K Fowler on January 21, 2011 at 8:27am

Guidelines changed regarding vacancy for properties under the HAFA program in December 2010.  Below is an excerpt from the supplement:  

 

B. Section 2 of Chapter IV is amended to include the following changes in the chart related to HAFA eligibility:
Not vacant or condemned
The property securing the mortgage loan is not condemned.
The property securing the mortgage loan is not vacant, except that the property can be vacant up to 90 days 12 months prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative RASS) or DIL Agreement if the borrower provides documentation that the borrower was required to relocate at least 100 miles from the property to accept new employment or was transferred by the current employer that it was their principal residence prior to relocation and there is no evidence indicating that the borrower has purchased a one- to four-unit property 90 days during the 12-month period prior to the date of the SSA, Alternative RASS

Permalink Reply by Darlene Krause on February 15, 2011 at 9:20am

Once again, important to know if the mortgage is a non-GSE.  If a non-GSE, then ask them if they signed the agreement to comply with the Directives from the Treasury Department regarding the HAFA program.  If they say yes, then they need to comply with the HAFA guidelines as set forth in Supplemental Directive 10-18, December 28, 2010.  You really have to be assertive with the negotiators at Bank of America because they are so overwhelmed I don't think they know what they are doing.

Permalink Reply by Terry Parrish on March 21, 2011 at 12:29pm

My Seller was required to relocate over 100 miles away in December, we applied for HAFA approval in November, got an offer in January  - and Nation Star declined them because they no longer occupy the property.  We lost the Buyer last week, and thank goodness got another offer we put in place.  They don't seem to care or notice.  They have taken me and my Client for a roller coaster ride that is unbelievable - to think we could have had a successful transaction months ago.

Finally escalated to HMPadmin this morning.  We shall see what happens.

Permalink Reply by Mike Sher on March 28, 2011 at 9:19am

HAFA FNMA,  Has FNMA changed the HAFA guidelines?

I have a seller who moved out of his home 3 months ago, is he HAFA eligible?  The seller moved less then 100 miles away.  I know in the new HAFA NON-GSE program that changed in December would allow him to do short sale but not sure about the FNMA HAFA

Mike Sher