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 Cami Pinsak on July 6, 2011 at 8:13am
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@ Abraham - With B of A, ask for a new appraisal. They are only good for 90 days and your SSA is good for 120.
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Comment by Abraham Walker on July 6, 2011 at 8:11am
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Has anyone every reduced the price below the approved list price on a HAFA short sale? We have been on the market since Jan.
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Comment by Michael Schneider on July 6, 2011 at 7:56am
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Both, I think. CCO (Citizens?) participates as a Servicer, so they have signed the agreements. But, unfortunately, Investor and Insurer participation is voluntary, at a file level I think. So, the process you are describing is "by design", as stated in the guidelines.
COO is basically saying: "Okay by me, but I need to ask the boss, who may take a few weeks to decide."
HAFA--Our Government Money at Play
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OK - HELP...I have had two HAFA short sales with CCO as the second lien. Each time, they originally say"yes", we're participating in HAFA, only to come back and tell me that "this investor" is not participating. However CCO is listed on HAMP page as participating in the HAMP program... What to believe?
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Comment by Myra McCaskill on June 28, 2011 at 3:48am
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@Sylvia - Wow! that is terrible, did you escalate the file at Chase? I am still working on BofA and have escalated the file, they are now asking for the lastest utility bill. I just sent it this morning, so we will see.
@Michael - You are correct, I was just told by a senior level person at BofA that the GSE's (Fannie and Freddie) did not update their HAFA rules with regard to occupancy, so the homeowner must stay in the property throughout the entire HAFA process unless they move for a new job at least 100 miles away or had forced relocation.
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Comment by Sylvia Barry on June 27, 2011 at 7:14pm
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@Myra - I had the same situation - the BPO agent put in the report that the house is vacant, even though my client met him at the property. The negotiator (this is Chase now) said it is vacant because it looked too clean - she actually said, for example, there is no dishes in the sink!
I told her that my client is a very neat and organized person, and we are trying to sell a house so the house has to be neat. The negotiator would not budge! What a mess!!
We ended up close on the sale last week as a traditional short sale!!
I also can't believe that the BPO agent said it's vacant! The BPO also came in high. That BPO agent now has a couple REO sales, so I am not sure about his motive while doing the BPO.
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@Michael - Thank you for the insight. I am so not happy about this, as we have been working on this Fannie Mae HAFA since 2/2011 and we have a buyer and they are just moving to slow. Then they come back with this last minute challenge. I called Fannie Mae, but they were not help, they said it was up to the servicer!
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@Myra I do believe that what BofA is telling you is indeed a correct statement of GSE policy, misguided as it may be. Treasury MHA/HAFA updated their rules, but GSE/HAFA did not, as far as I know.
My single parent client, insolvent with three small children, was turned down for HAFA, because her septic system broke, she had no money to repair it, so she moved out.
Fannie did turn around, approved the traditional, waive the deficiency, and grant a reduction in price for the septic. Just, no $3,000.
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BofA approved my client for Fannie Mae HAFA back in April 2011, now they are telling me that my client is now denied to the HAFA program because she no longer lives in the property (The appraiser put on his report that the property apprears vacant, ). I told BofA that HAFA updated their rules in 12/2010 and it now says "To be considered for HAFA, the property currently must be or recently must have been the borrower’s principal residence. A property that has been vacant or rented to a non-borrower for not more than 12 months prior to the date of the Short Sale is eligible for HAFA, so long as the borrower provides documentation that the property was such borrower’s principal residence prior to relocation"
I have provided this to BofA and they are still telling me they don't qualify because Fannie Mae HAFA's this new rule does not apply and must do a traditional short sale.
Has anyone experience this, if so, what did you do? Is there a Fannie Mae HAFA contract or email to get some answer's.
Thank you!
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Comment by Neddie B. on June 9, 2011 at 2:28pm
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Thank you Kevin and Mike.
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