Replies to This Discussion

Permalink Reply by Elise Fay on September 30, 2010 at 3:07am

I know I have a phone number for the division of the Treasury Dept. handling HAFA...just got to hunt it down. Check out this site, there is a phone number at the bottom.

https://www.hmpadmin.com/portal/docs/news/2010/hampupdate092310.pdf

Elise

Permalink Reply by Lori Young on September 30, 2010 at 3:33am

Assistant Inspector General Helen M. Albert 202-402-8187 HUD Headquarters IG. She should be able to direct you to the HAFA program manager or be able to take a complaint on a servicer. HUD runs the program and has complete oversite. Good luck.

Permalink Reply by Wendy Smith on September 30, 2010 at 3:54am

thanks I'll try that too. I sent an email to the contact info Elise provided (couldn't get thru by phone) and this is the response I just received:

Thank you for your inquiry, however please note that it is up to the servicer in any short sale as to whether or not they process the short sale as a HAFA short sale or not. Receiving, or not receiving TARP money, is immaterial.

HAMP Solution Center
P.O. Box 809006
Dallas, TX 75380-9006
Phone: 866-939-4469
Fax: 1-240-699-3900

Permalink Reply by Paul Francis - Vegas Short Sales on September 30, 2010 at 4:02am

What is the violation?

Permalink Reply by Wendy Smith on September 30, 2010 at 4:35am

the violation is: the borrowers qualify for HAFA, both the servicer and the investor are HAFA participants (Wells Fargo, Chase); the entire short sale process went through based on HAFA (waiver of deficiency & relocation assisatnce) and then upon short sale approval - it was announced the investor does not participate in HAFA, would not pay relo assistance and would not waive deficiency. (they also cut commission & title fees)
The borrowers were counting on the relo assistance and borrowed money to move against it - there was absolutely no reason to think the $3000 would not be forthcoming at closing
but MOST importantly, it that there is no waiver of deficiency. This is most important.
Chase says they have no delegation authority & oopsie, the file shouldn't have been processed as HAFA. I can live with the cut commission, the title company can handle the cut fees and the borrowers will make do without the $3000 but again, the waiver of deficiency is critical.
I suppose they can just plan to file bankruptcy if the deficiency is pursued but this is just wrong - I didn't think the HAFA plan included that investors could cherry pick with whom they choose to participate.
Truthfully I don't believe this is just an oopsie as this particular Chase negotiator seems almost sadistic in her attitude as though borrowers are garbage, Realtors are worse and why should title companies make money.
Sorry about the rant...this just really aggravates me. The negotiator's supervisor apologized for the negotiator's "mistake" but the negotiator never once offered even a lame 'sorry".

Permalink Reply by Teresa Lett on October 1, 2010 at 4:22pm

I just looked at the participating lenders list and it sure looks like they're on it. Wow, is all I can say. I would still pursue it if the borrower qualifies and they are on the list, there has to be a remedy, they can't get away with that.

Permalink Reply by Smitty on October 7, 2010 at 11:13am

Wendy, only the FIRST or PRIMARY lender participates in HAFA the second lender does NOT have to abide to the program. I don't take HAFA short sales anymore. I will only process as a traditional short sale.

The second lender can demand a slash in commissions and doesn't have to release deficiency and if I'm interpreting your post correctly that's exactly what happened to you. HAFA is a JOKE!! It definitely protects the lenders and does nothing for the homeowners OR agents.

There is no accountability. If they break the rules...oh well. HAFA is a guideline...not law.