Hi,

I am working an Ocwen Short Sale and it was really kind of easy.  The problem is that the approval letter does not indicate that Ocwen will not pursue a deficiency in the future.  According to the negotiator, this is an approved HAFA short sale and HAFA will send a letter in 1-2 weeks stating that a deficiency will not be pursued.  My seller is skittish about believing this.  Does anyone know if this is common practice???  Until we provide notice to the buyer that an agreement has been reached with her lender, the buyer doesn't have to start inspections or open escrow.

 

Thanks for any input you can provide.

 

 

Views: 259

Replies to This Discussion

Go find the rules for HAFA. It is absolutely clear that the seller cannot be chased after the closing. One of the problems that comes up is that HAFA demands that the 2nd cannot go for deficiency, either. Short sales die because of this "being nice" to the seller. (You may want to make sure that this is HAFA and not FNMA "HAFA" or FHLMC "HAFA", which are not the same.)

FHA is the same way, if you've read the FHA letter, you'd have your info. It does not come out in the approval.

Joe can they come after the homeowner for a deficiency in a FNMA HAFA?

Hi Joe,

Thanks for the response.  The problem is the letter doesn't even say this is a HAFA approved shortsale.  I have an email stating it is HAFA approved, but the letter doesn't say that.  I did try to escalate to [email protected], but haven't heard back.  Meanwhile the clck is ticking and we can't even tell buyer we have approval because in my seller's mind we don't.  Thanks!

 

If this is FNMA, you'll get nothing from hmpadmin except to tell you that they can't tell you because it is not HAFA - it is FNMA. Freddie and FNMA call theirs HAFA, They are not and are not controlled by HAMP. Go directly to FNMA.

Don't forget that your buyer probably needs at least 30 days to get his act together. Your seller may be sitting there with no deal when he finally is satisfied that he would have had a release of debt if he had gotten the sale done. (And aren't you in violation of the sales contract by not telling the buyer that it is approved? If you withhold the info and he cannot get funding in time, why couldn't he sue you?)

FNMA has had the policy to release the debt for at least 2 years now regardless of whatever their fake HAFA would do.

thanks, it is not FNMA.  just got an email today from Ocwen stating that we won't ever be getting the letter from HAFA folks as AZ is an anti-deficiency state and they can't come after the seller anyway.  Problem is, that only works for foreclosures.  you don't have the same anti-deficiency protection with a short sale.

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************