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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.
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
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
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
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
Do you attend the BPO appointment and supply the BPO agent with all of the information you just mentioned?
Do make sure the property was marketed and the price lowered at least a couple times before an offer comes in to show what the house has not been able to be sold for and hence, what it is not worth?
All of the HAFA and any short sales I do have offers in place. I have a group of investors that submit offers on all properties. In addition, I price the home at FMV and if the investors aren't interested I usually end up with an owner/occ within 2-3 weeks of the property being listed. When the ridiculous amounts come back,they walk. It is impossible to get anyone to pay more for a home than it's worth.
I submit a cover letter explaining the values, and I submit my comparables to support it. Do you think they care? Of course not! They don't even look at them but I will still continue to send them because that's they way I have my packages set up.
With B of A, having an offer in place doesn't even matter. They still go through their channels and when they approve the HAFA ss, they have you initiate the offer in Equator. What good is that when the offer is too low compared to their outrageous price?
Agreed, HAFA is a negative-value program, at least the Treasury version.
But, unfortunately, Aneetra, it's worst than you are saying IMHO. We are helping the Investor/Government lose more money, following their guidance.
HAFA was modeled after FHA/PFS and inherited the PFS flaw that when the valuation is done prior to the offer, there is a good chance that the appraised value will be above market value.
Then the property is likely to be conveyed to the Investor via DIL or FC, resulting in greater loss to the Investor/Insurer. Unless the Investor/Servicer steps in and lowers the required net.
This is why I avoid whenever possible having the appraisal done before the offer.
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