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 Laura Rencher on May 19, 2011 at 4:30am
The agent attended the BPO appmt. in November 2010. Just a photographer showed up. She gave a list of repairs to that person. She called the BPO agent repeatedly to follow up. When the BPO amount came back at 390K in January, we immediately began to fight it. House was marketed at 350K for 4 months prior to HAFA approvals with no offers. Was repriced in January with BPO amount. In February, offer came in at full price but buyer pulled out after inspection. We sent the inspection report. We got a lower offer(325k), they refused and countered at original BPO amount. We also were told the closing would have to take place prior to expiration of the contract.  Today, found out Freddie Mac is granting NO extension on HAFA contracts...DIL is the only option. Crazy thing is we have several parties interested in making an offer under the BPO now....but the contract expires on 5/24....so we are done.
Comment by Sean Wilder on May 19, 2011 at 3:48am

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?

Comment by Aneetra Isis Sherrell on May 19, 2011 at 3:45am

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?

Comment by Michael Schneider on May 19, 2011 at 3:27am
Yes, Sean, total agree.  Protect the client's interests and opportunities.  Hence, do the valuation, when you must to prevent something even worse from happening.
Comment by Sean Wilder on May 19, 2011 at 3:18am
I agree with Michael completely.  I never recommend applying for HAFA until there is an offer for the exact reason mentioned.  The only time we do it is if not doing so would result in the seller being disqualified from HAFA.
Comment by Michael Schneider on May 19, 2011 at 3:13am

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. 

Comment by Jim Stewart on May 19, 2011 at 3:03am
We need a "Like" button so I can "Like" Aneetra's post!
Comment by Aneetra Isis Sherrell on May 19, 2011 at 1:57am
I have 2 that were approved at prices too high. The sellers insisted on going that way for the money, but I told them the homes would not sell and they would have to do a DIL and get no money anyway! The money incentive is all a farce to convince homeowners to accept HAFA knowing it can't sell and they'll get the property back without having to spend money on foreclosure.

When are we all going to wake up and realize we are just helping the banks save money? The government us selling us a bunch of lies like they've been doing for the past 3 years...
Comment by Jim Stewart on May 19, 2011 at 1:33am
Laura, I would assume this is the point where the home goes deed-in-lieu. I've never gotten to this point with HAFA since every one I've ever tried (with the exception of the first one I did) has gotten to foreclosure status before ever even getting an approval for HAFA.  HAFA is a farce.
Comment by Laura Rencher on May 19, 2011 at 1:14am
Our hafa contract through AMS through BOA is scheduled to expire next week. The BPO is too high. We had one buyer pull out do to inspection and a lower offer turned down. Anybody know what happens when the contract runs out. Do they renew? Do they even notice? Any luck in getting them to reduce the asking price? we have submitted an inspection report, buyer feedback, and repair list. The BPO was done last November and prices have dropped since then. AMS/BOA doesn't seem to care.
 

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