Replies to This Discussion

Permalink Reply by Cameron Piper - Keller Williams on July 20, 2011 at 6:40am

Jeff,

 

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

 

Cameron Piper

Coldwell Banker Burnet

licensed MN Broker

Permalink Reply by Jeff Payne on July 20, 2011 at 7:18am

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.

Permalink Reply by Cameron Piper - Keller Williams on July 20, 2011 at 7:23am

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

Permalink Reply by Jeff Payne on July 20, 2011 at 7:25am

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

Permalink Reply by Cameron Piper - Keller Williams on July 20, 2011 at 7:34am

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

Permalink Reply by Jeff Payne on July 20, 2011 at 7:36am

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.

Permalink Reply by Cameron Piper - Keller Williams on July 20, 2011 at 7:47am

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

Permalink Reply by Jeff Payne on July 20, 2011 at 7:48am

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?

Permalink Reply by Jeff Payne on July 20, 2011 at 7:50am

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

Permalink Reply by Cheryl Calhoun on August 24, 2011 at 7:44am

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

Permalink Reply by Jeff Payne on August 24, 2011 at 9:09am

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

Permalink Reply by Cheryl Calhoun on August 25, 2011 at 9:06am

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