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 Laura Marshall on April 17, 2012 at 6:01am
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HI ! Does anyone know the amount of time that a lender is allowed in determining HAFA elgibility ? (Not approving the short sale - bust just determining eligibility) I have a short sale with Wells Fargo, and they are stating that they can take up to 120 days to determine if the borrower is elgible to apply for HAFA. I have done quite a few HAFA short sales, and I have never heard of this. The property is owner occupied, and it is not Fannie Mae or Freddie Mac. Thanks!
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Comment by Sandy Skover on April 12, 2012 at 11:29am
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This might have been answered before- if the agent is representing both the seller and buyer in a transaction will they still be paid 6% or will HAFA cut the commission to 4%?
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Comment by Michael Schneider on April 6, 2012 at 7:13am
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I've closed two HAFA deals in the past two months, each with 2nd liens and other encumbrances, condo and judgment liens. One Fannie, one Treasury. The outcomes have been very good.
Are other people seeing improvements in approvals and outcomes under the three HAFA programs?
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Comment by joe beauchamp on March 28, 2012 at 6:49pm
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@Gary - FNMA is also different. You have Freddie, FNMA and the real HAFA, the treasury stuff. It is usually so deep to get through HAFA that wrinkles from the investor guidelines don't show, but it probably is a factor, too. Like WF probably has twists that US Bank doesn't have, etc.
You can look up Freddie and FNMA on the net - I don't know how you'd know the others w/o contortions because servicers insanely do what they can to ignore Truth in Lending and NOT give you that info.
You are sort of stuck - the programs are different, I just got a demand for W2's and signed tax returns (not as unusual) which aren't there for other investors.
And what if you find it is VA or FHA? And if BOA, you have different twists for the different sub-companies, LRC, AMS, REDC, etc. You've asked a pretty knotty question..
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Comment by Gary Scott on March 28, 2012 at 6:32am
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When taking a short sale listing, assuming that the seller is eligible for HAFA, is it best to have the owner find out who the investor is before even taking the listing? Since HAFA approval gives a recommended sale price, is it best to have them request HAFA first? I know that Freddie Mac is unique from the other investors. All of the short sale listings I have taken, the seller has requested HAFA information, during or after the home is listed. Thanks.
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Comment by Jim Schneider on March 27, 2012 at 6:17am
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Kevin,
yes, as crazy as that sounds, they refuse to accept the MHA third party authorization as acceptable for them to speak to me. This isn't the first or last time I get told something incredibly crazy, but I want to see if anyone else has run into the same pile of crazy.
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Comment by Kevin - Greenville, SC on March 27, 2012 at 6:08am
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So, they are telling you that their own form is unacceptable?
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I tried calling in to the Home Affordable Modification Program Solution Center at (866) 939 - 4469 yesterday, but they said that the MHA Third Party authorization is not acceptable, they need to have a power of attorney sent to them before they can speak to me (the borrower's real estate broker). Has anyone else run into this?
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Comment by Sabrina Simpson on March 21, 2012 at 5:53pm
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My seller applied for HAFA Short Sale, and we received approval today on the short sale from B of A. Who do I contact regarding whether the HAFA was approved and am I suppose to show the $3000 on the HUD-1?
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https://www.hmpadmin.com//portal/programs/docs/hamp_servicer/sd1202...
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.
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