Closed a HAP sale today.

Mortgage balance $285,000

Contract price $180000

HAP approved up to 4% of purchase price for buyers closing costs

Contract date 3/12/11

Close date 7/20/11

 

This one felt like I was running a marathon!

Another happy Military homeowner who can move on with their life!

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Replies to This Discussion

Jeff,

 

Did you have to short the bank at all or were the sellers still current?

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

Cameron, it was not short, seller was current.  I have never done a HAP sale with the seller in default, always ended those up as a short sale with the lender.

We're working on one right now where the seller is in default - never again.  I'll start a new thread so that others can learn from that experience as well.

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

If they are in default why would you do a HAP sale?  Woudn't that be just a standard short sale.

Cameron Piper - CB Burnet said:

We're working on one right now where the seller is in default - never again.  I'll start a new thread so that others can learn from that experience as well.

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

Our thinking was that the bank would approve the sale quicker if they received the additional funds from HAP.  Little did I know that banks are okay at losing lots of money, but they are awful at only losing a little bit of money - its so backwards. 

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

If Hap was paying the additional funds you wouldnt have a short sale.  I will check to see if HAP will even work with a seller who is in default.

Let me save you the trouble in calling HAP though.  HAP will tell you that they don't work with delinquent borrowers.  You can however capitalize all interest and late fees onto the loan through a modification and then HAP will be able to help the borrower because they are current.  Conversly if the bank were to waive (short) the late fees and unpaid interest - hence the short sale, you would be able to use the HAP benefit.  Ultimately the bank is having trouble deciding whether they want to lose a couple thousand in lates fees and unpaid interest but gain $100K from HAP.  Doen't seem like a hard question to me but alas they are sure struggling with it.

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

Cameron, I read the guidelines on who qualifies for HAP and I dont see anywhere where the homeowner has to be current. Anyone know of this guideline?

Good info.

I just read this too..

Foreclosure Assistance

If foreclosure proceedings have commenced, an applicant may elect to receive foreclosure benefits or private sale benefits. Foreclosure benefits may be paid directly to the applicant to reimburse for foreclosure costs paid by the applicant, or paid to third parties on the applicant’s behalf.

NOTE: Eligible HAP applicants who work at overseas installations announced for closure or realignment may receive only private sale benefits. Government purchase benefits are not available at overseas installations.



Cameron Piper - CB Burnet said:

Let me save you the trouble in calling HAP though.  HAP will tell you that they don't work with delinquent borrowers.  You can however capitalize all interest and late fees onto the loan through a modification and then HAP will be able to help the borrower because they are current.  Conversly if the bank were to waive (short) the late fees and unpaid interest - hence the short sale, you would be able to use the HAP benefit.  Ultimately the bank is having trouble deciding whether they want to lose a couple thousand in lates fees and unpaid interest but gain $100K from HAP.  Doen't seem like a hard question to me but alas they are sure struggling with it.

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

Did the lender waive the interest and fees? How were you able to get it closed?



Cameron Piper - CB Burnet said:

Let me save you the trouble in calling HAP though.  HAP will tell you that they don't work with delinquent borrowers.  You can however capitalize all interest and late fees onto the loan through a modification and then HAP will be able to help the borrower because they are current.  Conversly if the bank were to waive (short) the late fees and unpaid interest - hence the short sale, you would be able to use the HAP benefit.  Ultimately the bank is having trouble deciding whether they want to lose a couple thousand in lates fees and unpaid interest but gain $100K from HAP.  Doen't seem like a hard question to me but alas they are sure struggling with it.

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

The seller would want to do private sale benefits which means HAP will cut a check at closing instead of doing acqusition

Cheryl Calhoun said:

Did the lender waive the interest and fees? How were you able to get it closed?



Cameron Piper - CB Burnet said:

Let me save you the trouble in calling HAP though.  HAP will tell you that they don't work with delinquent borrowers.  You can however capitalize all interest and late fees onto the loan through a modification and then HAP will be able to help the borrower because they are current.  Conversly if the bank were to waive (short) the late fees and unpaid interest - hence the short sale, you would be able to use the HAP benefit.  Ultimately the bank is having trouble deciding whether they want to lose a couple thousand in lates fees and unpaid interest but gain $100K from HAP.  Doen't seem like a hard question to me but alas they are sure struggling with it.

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

Thank you.

Jeff Payne said:
The seller would want to do private sale benefits which means HAP will cut a check at closing instead of doing acqusition

Cheryl Calhoun said:

Did the lender waive the interest and fees? How were you able to get it closed?



Cameron Piper - CB Burnet said:

Let me save you the trouble in calling HAP though.  HAP will tell you that they don't work with delinquent borrowers.  You can however capitalize all interest and late fees onto the loan through a modification and then HAP will be able to help the borrower because they are current.  Conversly if the bank were to waive (short) the late fees and unpaid interest - hence the short sale, you would be able to use the HAP benefit.  Ultimately the bank is having trouble deciding whether they want to lose a couple thousand in lates fees and unpaid interest but gain $100K from HAP.  Doen't seem like a hard question to me but alas they are sure struggling with it.

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

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