Approved HAFA short sale - who decides when & how much to drop price?

I need help. I have been given a list price that is way too high for the neighborhood. I can't get the assigned negotiator to return my calls or emails to discuss. This is a BofA Haffa short sale with approval letter. I can!t get an offer to submit at this price. Am I free to reduce price myself or do I need to wait for the negotiator to tell me when & how much. Thanks so much for your help!

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Boy this is so typical.  Sellers..do not apply for HAFA BEFORE you have an offer.  It sounds good, but it will add too many months to the process.  Beg for HAFA approval with an ARASS after your offer comes in.  I love HAFA, but you can't follow their pre-listing guidelines..they are so off base with suggested pricing.  My experience here in the Palm Springs, CA area at least..maybe better elsewhere????
Just keep sending the negotiator updated comps and let them know this price will never generate an offer.  Sooner or (more likely) later they will agree to a price drop.  I've also had success by asking for a supervisor and bumping it up the chain of command.
What is ARASS from a previous reply?

Ted Breden said:


Gabe Sanders said:
Just keep sending the negotiator updated comps and let them know this price will never generate an offer.  Sooner or (more likely) later they will agree to a price drop.  I've also had success by asking for a supervisor and bumping it up the chain of command.
Send a message again to your negotiator and upload your comps. Send to negotiator, Team Lead, Asset Management. If my negotiator does not respond in 2 days I alert everyone else!!!!

The HAFA short sale program does not itsel set any pricing.  The guidelines for HAFA states that pricing is at the Servicer's Discretion, as well as many other guidelines that defer to servicer discetion.

If you have escalated an issue with the servicer and have gotten no where, you can go to the following websites for

escalation issues:  (a)  [email protected]  they may require that you have escalated to servicer.  Making Home Affordable (MHA) is working on an Escalation Process that will be handled specifically for HAFA issues, as they want this program to succeed.  It should be rolling out this summer. 

 

                             You can go to www.hmpadmin.com  and CLICK on "PROGRAMS" and pull off the lates MHA Handbook 3.2 that give all the guidelines for HAMP and Making Homes Affordable Foreclosure Alternatives (HAFA) pages 114 - 127, I think.

You need to check the PROGRAM site frequently and look for SUPPLEMENTAL DIRECTIVES that let you know what is going to change and when it is effective.    A good one is SUPPLEMENTAL DIRECTIVE 10-18 (12/28/10) EFFECTIVE 6/1/ll on a MAJOR CHANGE in Eligibility -- under VACANT see below:   (However, the part about having a tenant was inadvertently left out of Handbook 3.2 -- but it still applies and you may have to educate the servicer via sending them the supplemental directive 10-18 guideline.


Vacant Property


To be considered for HAFA, the property currently must be or recently must have been the borrower’s principal residence. A property that has been vacant or rented to a non-borrower for not more than 12 months prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative RASS) or DIL agreement (DIL Agreement) is eligible for HAFA, so long as the borrower provides documentation that the property was such borrower’s principal residence prior to relocation and such borrower has not purchased a one- to four-unit property during the 12-month period prior to the date of the SSA, Alternative RASS or DIL Agreement. The borrower’s reason for relocation does not need to be connected to re-employment or transfer of employment. Also, there is no longer a minimum distance requirement. Servicers are not required to verify the number of miles the borrower moved from the property.


 

888-995-HOPE.   The counselors are there for clarifications also.

 

I hope this helps. 

                            (b)  www.hopenow.com   You can talk to a trained housing counselor 24 hrs a day, 365 days a year at
I suggest you simultaeously reduce the price to generate an offer within 10% of market value and be prepared with a solid as-is appraisal with a comprehensive inspection report and repair estimate. Then, you can submit an entire ss package, along with a valuation appeal. There is no question that it will extend your approval timeline, but it's the only way that I know to generate consistent investor responses.
I am having same issues with the HAFA pricing by Bank of America.  I have been able to get the price reduced albeit not much.  To me it is a fine line as I want to follow their pricing but at some point all bets are off, as they will be doing deeds in lieu up the wazoo if they do not get realistic.

This might be a situation in which the bank does not want to do a HAFA. I would ask them that question. You could also prepare a CMA and send it, along with photographs to substantiate your point. There is also the possibility you will find a buyer who will pay what the bank is asking -- I've had it happen over and over. So I try not to be too judgmental. Unless, of course, it's a $200,000 home surrounded by other $200,000 homes in a tract subdivision and the bank wants $250K. Then I'd make a big deal out of it. But in urban areas, I'm often astonished at what buyers will pay. What's the worse that would happen? The buyer's appraisal will come in low, and then Bank of America will lower its price.

 

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate

Sacramento Short Sale Agent

Certified HAFA Specialist

 

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Understood. I'm suggesting that if their value is off by 10% or more and they aren't budging, then processing an approval for a deed in lieu may get you where you want to be, because the investor will likely reevaluate again before finalizing. Besides, a deed in lieu can still be negotiated to your client's benefit even if you do end up working for free. You can't buy that experience.
Nice!
Since the seller is still the owner, I would discuss it with them and inform them of the price you recommend.  That's the only way to get an offer to submit.  I have a BofA Hafa Approved Short Sale that fell out of escrow after being in escrow 60 days.  It took BofA 3 months to give me the approval.  Since 5 months had passed I had to drop the price several times to finally get an offer.  When I asked BofA to provide me with a new valuation they said it was due but didn't do an appraisal until I submitted an offer $40k lower than the original approval.   Good Luck!

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