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 Sameer Punjani on July 9, 2011 at 5:38am
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Kylee, thats what i said to my client and they wanted to try a loan mod with chase because they kept callin them after i had a cash offer on their home. Seems like these banks will do anything not to short sale cause they know the odds of the borrower defaulting again. They want to foreclose, then collect the full balance from fannie mae balance from tax payers programs like fannie and freddie.
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Comment by Kylee Roe on July 9, 2011 at 5:37am
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Sameer is on a mission. I am in line with you!
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We should all sign a petition to get rid of ams. Send to all banks who use ams and let them know how much they truly do suck. Im sure the banks pay them millions to handle their short sales.
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Is there a way to just pull these HAFA short sales and sell as a regular ol' short sale? It's gonna be hard to explain to my client why he doesn't get his HAFA money, but....at least his home would actually sell and close!
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AAAARGH!!! Hafa/BofA/Freddie via AMS Servicing. Going round and round on shoddy BPO last Sept. at 80K over obvious comps at 250K. FINALLY got a price that was reasonable in April, sold in two weeks (DUH!!!). NOW, AMS won't put it thru for final approval (and they've had it for 6 weeks!) because the net doesn't meet B of A/Freddie guidelines. Delegated loan. We are $2500 short. Negotiator said he'd put thru to a supervisor after much loud, strong talk from me. Yet.....need ideas.....where do I go, what do I do? They gave me the price they wanted. I got it. They never gave me a net to work with until 2 weeks ago. It's BS.
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Comment by Paola Martinsen on July 8, 2011 at 4:04am
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Does anyone know what the min net is with a HAFA short sale? Or does it vary according to the investor still? I would imagine its standardized all across the board.
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Comment by Clay and Kathie Kime, CDPE, SFR on July 6, 2011 at 9:38am
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Yes ... but, If CCO will accept the HAFA approval terms of the 1st trust (Max payoff and Waive Deficiency) you and your client still win! It can still work. If CCO won't accept those terms, then yes, for a HAFA SS, you are S.O.L. If then . . . complete the SS outside HAFA with all the goodies omitted. -like we did in the good old days.
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Comment by Cami Pinsak on July 6, 2011 at 9:32am
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Thanks Clay, I went straight to HAMP Admin for the answer. This is their response:
A servicer may work with several investors who may or may not be participating in HAMP. In addition, a servicer needs to sign a separate Servicer Participation Agreement for the 2MP program, so yes. a servicer can participate for 1st liens only.
So it appears that I am S.O.L.
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HI Cami,
CCO is a HAFA participant. I closed one last week with them as a HAFA 2nd. They may be correct about the participation being selective per investor, but I don't think so. Here is a contact that may be of help to you inside CCO:
Harriette Martin-McMillan
Fax#1-888-999-6053
Telephone # 1-800-456-8855 ext 4045
Direct # 804-627-4045
If for some reason CCO won't participate in HAFA for your deal, you might have a problem with the 1st trust approval. The 1st trust HAFA Approval will certainly require that the 2nd (CCO) accept the $6,000 (Maximum) and Waive all remaining deficiencies. If CCO will accept the short sale on these terms, it won't matter whether or not they officially call it HAFA.
Good Luck!
Clay
P.S. CCO does Fee Appraisals not BPO's. Add time for the turnaround. They are not quite as quick as CCO thinks they are.
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Comment by Guy Giuffre on July 6, 2011 at 8:16am
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Yeah, I did. I ended up submitting the best offer I could get on it and eventually was approved. I would say just handle like any other short sale and submit the offer. 7 months with no activity is a long time. Good luck.
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