HAFA - Home Affordable Foreclosure Alternative
Information
Let's get this group going to track how this program is helping homeowners avoid foreclosure.
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Latest Activity: Jul 11, 2017
HAFA Short Sale Information
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HAFA is now an expired program.
The escalation process for HAFA is easy and effective and works with all HAFA participants.
https://www.hmpadmin.com/portal/resources/advisors/escalation.jsp
Email: [email protected]
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Here are some documents that may help you understand the HAFA guidelines.
4506-T.pdf
Quite possibly because HAFA and HAMP have both lagged far behind in expected completions, the Treasury Department recently reviewed and eliminated some of the rules to make eligibility easier.
With the HAFA program being designed, in part, to catch and help those homeowners who fell out of the Home Affordable Modification Program. However, the program has had less than 1,000 short sales since its April 2010 launch.
Among the Treasury’s changes are that servicers are no longer required to verify a borrower’s financial information or determine whether a borrower’s total monthly mortgage exceeds the bar of the 31% debt-to-income ratio.
According to one Treasury spokesperson, “While this requirement has set the standard for mortgage affordability under HAMP, it is not as important for homeowners ready to transition out of their home. Eliminating this requirement further streamlines the process for homeowners applying to the program.”
Servicers are, however, still required to obtain a signed hardship affidavit.
Section 6.2.4.2, Chapter IV of the Handbook is amended to increase from $6,000 to $8,500 the amount a servicer may authorize the settlement agent to pay from gross proceeds to subordinate mortgage holder(s) in exchange for a lien release and full release
of borrower liability. Investors will continue to be reimbursed one dollar for every three dollars of short sale proceeds paid to a subordinate mortgage holder up to $2,000.
All borrowers must now receive a short sale agreement within 30 days of the request.
The best way to assure your short sale is not yanked for the homeowner to go try a loan mod after you are listed it is to .... make sure your borrower seek the HAMP program first, then HAFA. Also, if you run out of time (120 days) ask for an extension.
Discussion Forum
Only Shorting the 2nd Lien Holder-Wells Fargo 1st is CITI and investor is Fannie Mae.
Started by Jimmy Williams. Last reply by Brian Avery Mar 25, 2016. 2 Replies 0 Likes
Hello,1st Lien Holder is serviced by Citi, Fannie Mae is Investor, who has filed a LIs Pendance. 2nd is HELOC with Wells FargoCiti is not short in the sale, but Wells Fargo will be short. Will this…Continue
ONLY SHORTING THE 2nd Lien Holder GMAC- does HAFA APPLY?
Started by Kathy Dyer Realtor Rosevillle Ca. Last reply by Kathy Dyer Realtor Rosevillle Ca Apr 2, 2015. 4 Replies 0 Likes
I have a new short sale in Ca. We are only shorting the 2nd lien holder, GMAC. Can we do Hafa if the first is not being shorted? NON GSE.Continue
OCWEN participates in HAFA, but doesn't pre-approve the short sale???
Started by Jim Schneider. Last reply by Kevin - Greenville, SC Mar 1, 2014. 2 Replies 0 Likes
I just got off the phone with the short sale department at OCWEN, and they are saying that they still participate in hafa, but they don't have to issue a pre-approval letter. I thought that was the…Continue
Investors Turning Down Short Sale Because Their Own Appraisal Is Too Low
Started by Kathleen Sheridan. Last reply by joe beauchamp Oct 2, 2013. 1 Reply 0 Likes
I just had a investor turn down a HAFA short sale because the appraisal that they ordered is too low. It seemed spot on to me. Now they want me to sell the property as a regular short sale for an…Continue
Comment Wall
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Comment by Rita Flood on September 25, 2010 at 10:22am
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have some issues with HAFA declines from Banks. 1, saying client is not delinquent. 2 need to be invited (indymac) 3. have to have applied for a mod and declined by bank not borrower. Hafa states they are supposed to be with HAFA guidelines which reads Seller can request HAFA . then there is a paragraph which states within Servicer guidelines. Which is it HAFA or Bank Guidelines. Also, with requesting HAFA approval prior to HUD and Offer. Speaking with my Negotiator and Wells, he says its based on the Investor Guidelines. So far its clear as mud. Can someone enlighten me on the true HAFA submission requirments. I have the regulations in front of me. Its the banks that are not following them. Thanks.
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Comment by Brigitte Powell on September 24, 2010 at 11:49am
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Hooray Kynse :-)!!!!
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Just read the same thing.....huh??
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Comment by Janie Booth on September 24, 2010 at 11:11am
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Amy asked a question on B of A site regarding HAFA shorts sales and mentioned that the buyer could only be cash or conventional...did I miss something? I have never heard this before.
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Comment by Wendy Smith on September 19, 2010 at 5:23am
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that's great Kynse. speaking of Chase, I need the names of a few power people if anyone can help please. I haven't had to go up the ranks further than a supervisor lately, now I need big guns. Chase is trying to wiggle out of HAFA even though the sellers meet all the requirements (thisis the one where Chase sent the sellers the HAFA package and are now reneging). thanks.
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Comment by Kynse L. Agles CDPE on September 19, 2010 at 4:38am
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I just received a HAFA approval from Chase! The seller is getting $3000 HAFA incentive at closing! Property is located in Lee County Florida, once I escalated the file I had an approval within 7 days! The seller is very happy, this one is set to close on or before the 28th of October! Hooray!!!
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Comment by Mike Horton on September 17, 2010 at 1:56pm
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On BOA I understand you can fax to Correspondence department at 805-520-5019 and ask for the name and contract information for the loan. You may want to ask chase about a "qualified written request" which they are supposed to respond to by federal law - http://classactiondefense.jmbm.com/2007/01/12_usc_2605servicing_of_...
Try this web site for information and use it to convince them to get the answer you need.
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Wendy, Joe is right, i would challenge that, especially since they told you from day one that they qualify. If they screwed up they need to fix it. They must tell the Seller who the investor is. Escalate is right. Now they want to get to your commission......I'm almost willing to bet on that one. Play tough
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Comment by joe beauchamp on September 17, 2010 at 12:03pm
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Wendy, I don't have quite that - the only surprising thing to me is that they went that whole distance BEFORE knowing if the Investor does HAFA? That seems wrong. I'd triple check on that.
BofA famously ignores laws and keeps info to themselves, recently they stopped telling you about fannie mae and freddy mac, even. Very stupid since you can just go to either website and look it up. You can try that.
You can have the seller call in. Truth in lending - they MUST tell the seller who the investor is. It is also in some of the initial paperwork. If you are authorized, BofA will illegally ignore that and not give you the info, I don't know that Chase is as stupid. That IS criminal. Take names, escalate up the chain - you'll find someone who knows you mean it when you say you are giving their names to the D.A. for criminal prosecution - violating truth in lending willfully, etc.
Then you can talk to the investor directly. At BofA, if I call enough, I can usually get someone to give it to me. Most are Fannie Mae for me, so it generally isn't an issue. The MI is an issue, again the same thing - you can't just say some unknown entity requires money from you. For all your seller knows, the Chase negotiator has you paying his Uncle Spudsy $10K. Not legal -- Truth in lending... Nasty violation..
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Geez, just got an email, Chase has maintained all along the sellers qualify for HAFA, the sellers completed and ret'd to Chase the HAFA package, the whole 9 yards - now at the 11th hour, Chase is saying the investor does not participate in HAFA. What?!? The sellers are depending on that money to move - they actually borrowed against it in order to vacate the premises - now what? The Lis Pendens has WAMU as Trustee - that should be the investor, right? The negotiator at Chase is saying that Chase has no delegation authority in their servicing agreement with the investor but won't confirm or state who the investor is. Anybody encounter this scenario yet? The negotiator already submitted the offer/hud to the investor without the HAFA $$$. I wonder if the investor will renege on the full release too....
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