HAFA - Home Affordable Foreclosure Alternative

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HAFA - Home Affordable Foreclosure Alternative

Let's get this group going to track how this program is helping homeowners avoid foreclosure.

Members: 626
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.

 

HAFA Overview for Agents 

Bank of America HAFA overview 

Forms and Guidelines

 

RMA.pdf

RMA Instructions.pdf

New Dodd Frank.pdf

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

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

Tags: Short, Sale, Citi, Fargo, Wells

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

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

Tags: Holder, Lien, 2nd, HAFA

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

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

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

Tags: FannieMae, Low, Too, Appraisal

Comment Wall

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Comment by Kelly Meadows on April 2, 2010 at 8:49am
Is there a HAFA package? Since it is supposed to make the process universal, has anyone seen a documents package that can be submitted? Or do we continue to use our own or the bank's regular forms?
Comment by Judi Wienk on March 29, 2010 at 1:44pm
I spoke with B of A this morning for a client. The dust had still not cleared and I was asked to contact another number. That number was disconnected, so I think they are still trying to figure this all out. I called back and I was told to wait until after April 5th.
I wanted to question the fact that it is not in writing that a homewoner was declined a loan mod. How do they know if you applied? I could not get an answer.
Comment by Steele V. Propp on March 29, 2010 at 12:56pm
But HAFA doesn't start for most of the banks until 4/5/2010. Only know of one group that has started early, Wacovia.

Anyone else?
Comment by Del on March 29, 2010 at 12:09pm
So I attempted this HAFA deal with BofA last week and had my Seller call Equator. Was put on hold by the bank and when she came back basically said the Seller is denied the program because the investor is not participating. I've heard most of the bank people havn't even been trained on HAFA and here they are declining people already??? I will still attempt to short sale the property and once I get an offer will try this again and submit the HAFA documents/request along with the package and hopefully the outcome will be different. Good luck to all!!!
Comment by Steele V. Propp on March 29, 2010 at 12:48am
Major updates to program as of this last Friday including an increase in the seller relocation allowance from $1,500 to $3,000. Check out these reports:

http://www.box.net/shared/jrhxmklde9
Comment by Rosemary Brooks on March 29, 2010 at 12:04am
To help clear up some of the confusion: Make sure your homeowner(s) have seeked out what their options are with the lender FIRST. They are to request a loan modification and if that does not work for them, then they are eligible for HAFA.

A FREE service is available and approved by HUD to get help for the homeowner(s) in an attempt to get them a loan modification FIRST. One of the agencies the homeowner can go to get help in preparing their request for a loan mod is NID-HCA (FREE) HUD approved and supported service. This service is nationwide.

Agents, letting the homeowner know about these FREE and Approved services can go a long way in getting their short sale business should they be unable to get or maintain a loan modification.http://www.nidonline.org/
Comment by Rosemary Brooks on March 29, 2010 at 12:00am
Please check out: http://makinghomeaffordable.gov/borrower-faqs.html for most asked questions about the program.

Also, there is a printable list of HAMP Participating Servicers: http://www.makinghomeaffordable.com/contact_servicer.html

Fannie Mae / Freddie Mac are mandidated to use the HAMP program / which means HAFA as well.
Comment by Rosemary Brooks on March 28, 2010 at 11:41pm
I believe Freddie/Fannie must have to use the HAMP program so it would seem that they would need to use the HAFA too, but that is a good question to research. I will come back to this one after doing a little diggin'.
Comment by Steele V. Propp on March 21, 2010 at 10:42am
Have not heard of anyone that has started the program early. Like you said, in theory sounds good but with all the loopholes I am holding less and less hope out.

However, today my faith in any goverment program is at an all time low.
Comment by Tasha Griffin on March 10, 2010 at 12:57pm
YES!!! you can submit the packages before the 5th. It is in page 2 of the 43 page manual. "Provided that the servicer is able to collect and report all required information as described in the "Reporting Requirements" section of this "Supplimental Directive". I'm meeting with clients tomorrow and currently cramming for the "exam". Trying to be comfortable enough to explain some of the ins and outs.
 

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