HAFA - Home Affordable Foreclosure Alternative

Information

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

 

 

Click The Button Now To Hire A Short Sale       Superstar To Support You.

 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 Lisa Jalufka on September 11, 2012 at 6:55am

@Jana - I am having the same problem.  I did not find anything stating 10% up to $8500 in the documents from Cami & Jen.  Did your situation get resolved? 

Comment by Cami Pinsak on July 30, 2012 at 10:24am
Comment by Jen Hill on July 30, 2012 at 10:21am

Hi Jana!  Will this help?  HAFA.pdf

Comment by Jana Reyes on July 30, 2012 at 10:07am

Help! Does anyone have a copy of the HAFA Supplemental Directive that went into effect in June 2012?  I'm trying to get a HAFA short sale approved and the 2 lienholders are in conflict over the "HAFA guidelines".  The 1st is stating that the guidelines specify that they are to give the 2nd 10% of unpaid balance (in this case 79k) capping at $8500, which translates to $7900.  The 2nd is stating that the guidelines afford them $8500. I'd like to produce a copy of the guidelines so I can get them on the same page but I can't find an official copy on the web.  Thanks!!     

Comment by Neil L. on July 12, 2012 at 12:30pm

Can HAFA be cancelled by PMI?

Comment by Kevin - Greenville, SC on July 11, 2012 at 3:09am

@Jim, Yes.

Comment by Jim Stewart on July 11, 2012 at 2:13am

Does Freddie Mac HAFA still deny you if you receive an offer prior to them issuing an approval for HAFA?

Comment by Kevin - Greenville, SC on July 6, 2012 at 4:42am

Yes, but it wouldn't matter if they weren't according to the IRS.  The burden of reporting is on the taxpayer.

Comment by Jen Hill on July 6, 2012 at 4:38am

Hi All!  Does anyone know, if a seller closes on a HAFA approved short sale, is the homeowner still issued a 1099???  Thanks!

Comment by Wendy Rulnick on June 27, 2012 at 7:22am

Comments re: non-borrower income being required for HAFA, e.g. current spouse has income, borrower does not, and short sale home is vacant previous residence of borrower...

 

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