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 Tracy Gibson on July 16, 2010 at 2:53am
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I found this guide which make the Bank of America process clearer>
http://www.bankofamerica.reo.com/documents/HAFAEducationGuide.pdf
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Comment by Paola Martinsen on June 30, 2010 at 11:43am
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Has anyone completed or is in the process of completing a HAFA SS with BAC? If so please share your experience. Steps taken, outcome, etc...
I have a BAC file that we are getting close to getting an approval on and the negotiator just told me the borrower needs to call 877-288-9638 (an attorney's office) to accept or decline HAFA. So i want to find out all the implications before my client makes a decision to acept or decline.
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Comment by Elise Fay on June 22, 2010 at 7:03am
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I just had an approval letter from IndyMac...it is a Fannie Mae loan. The approval stated that the Realtor commission should be 5%. The additional 1% is going to a 3rd party, ServiceLink, who negotiated the short sale. I pushed back and sent them the Fannie Mae guidelines about not reducing the commission below the agreed upon 6%. Well the approval stated that the 3rd party commission cannot come out of the sale proceeds! Commissions payable are to be 6% but how they divide that up obviously is open for discussion according the the lender.
Well I caved in and upon final review of the HUD by the closing agent, the lender told Title Officer to remove the 1% fee to ServiceLink and give it back to the agents. WOW. Now I had just been told that this same thing happened to another agent that I spoke to, but of course I figured something like that could not happent twice...and not to me, but it did. Maybe it all depends upon the final HUD and the actual net, when all is said and done? Go figure!
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Comment by Michael Schneider on June 22, 2010 at 6:25am
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I'm on my first HAFA. What's the choice. Gotta try it to learn it.
Yeah, I understand, Wendy. I been trying to find a client that is eligible, and I've actually manage to find one!!
So, I'm trying it, at the risk of cramdown. But, that risk is always there.
Site is up: hmpadmin.com
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Comment by Wendy Rulnick on June 22, 2010 at 5:59am
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Michael- I've seen the link to their site was down, too. Don't know if it is still down. So far I've had NO ONE helped by this program. Sadly.
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Yes, I saw that, too, Wendy, in the Agreements. But, NAR is stating that this "retained vendor" fee was rescinded.
I haven't found the updated policy on Treasury's site.
I just had this discussion with the Servicer and was directed to send in the Alternative RASS agreement at 6%. (Which of course is not a committment.)
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I see this is HAFA guidelines: The amount of the real estate commission that may be paid, not to exceed 6% of the contract sales price, and when applicable, notification that the servicer retained a contractor to assist the listing broker with the transaction along with the payment amount (expressed as a fixed dollar amount or percentage of the contract sales price) if paid from sale proceeds.
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NAR's statement of Treasury MHA HAFA Commission Policy is described here:
http://www.realtor.org/realtors/basics_short_sales
Under HAFA Commissions Policies
Alternative RASS at 6%, NO 1% payment to the third party engaged by the Servicer.
Also, I believe that Fannie/HAFA explicitly prohibits the Servicer from deducting the "retained vendor" fee from sale proceeds.
Fight the Realtor Cramdown!! Just say NO!
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Jonathan - I just noticed the official HAFA site is GONE!! The links don't work, I've checked two places. I was going to cut and paste the language here. Very poor! We need to cause a public uproar about the fee. I suspected the servicer would take that, on top of the other fee they already get for doing HAFA!
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Jonathan - I noticed that in the original HAFA language - third party 1%, and their right to take part of your commission for it. Outrageous!!!
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