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!
Tags:
Jeff,
Did you have to short the bank at all or were the sellers still current?
Cameron Piper
Coldwell Banker Burnet
licensed MN Broker
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
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
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
Good info.
I just read this too..
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
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
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