To HAFA or not to HAFA?
Just want to check with some of my fellow short sale processors out there on standard of practice is in regards to HAFA. Myself, if my sellers meet the guidelines for HAFA, I submit my short sale package as HAFA. But some of these files are taking forever to get thru the system (one with BofA was submitted in January..and just got a counter from the bank).
But I just talked to an outside short sale processing company (Attorney) and they said all of their short sales are presented as standard short sales, because HAFA takes too long.
I have actually had lenders tell me also that if it presented as a "traditional" short sale the process is faster and they may allocate more proceeds to a 2nd lienholder....rather than what is required under HAFA guidelines.
I'm in California so deficiency is not a concern.
What is everyone's thoughts and practices? Just curious...
Replies to This Discussion
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Permalink Reply by Bill Black on
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My input would be that for the seller HAFA is typically always the best route.
The fact that $3,000 moving expenses are available in a HAFA, a set price is in place and if BPO is managed correctly this is a HUGE plus.
So if if an actual processing company (Attorney) presents ALL short sales traditional I would be concerned of their lack of fiduciary responsibility and best interest of the seller. A concern may be that as the Agent you chose to work with a "group" that took the easy road for them/you but did not pursue best interest of homeowner. (Anyone can sue anyone- so its all on the fact that they MAY not win but it will cost you about $3,000 to fight it- and if they do wind that price doubles at a minimum.)
One other thing to think about is B of A is now using the new Authorization to Release information and they are STRICT they the only person that B of A will correspond with is THE specific Attorney licensed- so that Attorney better be waiting on hold for three hours as his staff or paralegals do not have the right to do this any longer.
I do consulting for law firms and they are all trying to find a work around but as of this time the VP of short sales is stating that ONLY a licensed Realtor or a Licensed Attorney can have a log in to equotor, correspond to B of A and speak on the phone to B of a for a short sale....
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Permalink Reply by Kevin - Greenville, SC on
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Bank of America has omitted a party that was covered in the Mortgage Settlement. Also, their may be other people who need to speak with them on the Borrower's behalf.
Housing counselors can communicate with banks/servicers.
http://www.atg.wa.gov/uploadedFiles/Home/About_the_Office/Cases/Nat...
They are many situations when a borrower has executed a legitimate, reasonably needed, legally binding power of attorney. (I add all these qualifiers because sometime there are scammers using powers of attorney.) This is a legal authorization required by law to be recognized. Yet, the BANA TPA appears to be above the law in this regard.
http://www.californiashortsalelawyer.com/2012/04/high-risk-bank-ame...
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Permalink Reply by Cami Pinsak on
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You have to do what is in the best interest of your seller. Generally, that is HAFA, even with all of its faults.
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