Equator and Wells Fargo...HAFA?!?!
I just initiated my first Wells Fargo equator short sale and got immediately sent to the HAFA department (which coincidentally means I could get kicked out of Equator). I've had terrible experiences with HAFA and have a signed p&s with only the one Wells Fargo lien here. So far we are two days in and just stalled and I can't even submit the sellers financials that I have ready to go.
I've been told that my seller can call in and get removed from HAFA but obviously my seller would like the financial benefits of HAFA if it is a true possibility. The seller had qualified for a loan modification already but turned it down because it still wasn't going to meet their financial needs.
How is the HAFA program through Wells Fargo when you already have an offer? I have a good offer that I feel should go smoothly in a traditional short sale...so am hesitant to get tied up in a program just to attempt to make my seller a few dollars. How has everyone else's experience gone at this point?
Replies to This Discussion
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Permalink Reply by Tara Polley on
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Hi Samuel,
Did your seller qualify for the HAMP modification? If so, and they are unable to meet the payment, they should easily get approved for HAFA, since they are virtually the same guidelines. Being that you already have an offer, it would probably take about the same time as the Traditional method, and offer your client the relocation funds. My opinion would be to go for it, but make sure you stay on top of the file to be sure it is being processed in a timely manner. :) Good Luck!
Btw: In theory, it should be a shorter timeframe to get approved, because they are supposed to use the documents from the modification to qualify the HAFA without additional review, so see if you can pursue that option for a quicker approval process! -
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Permalink Reply by John Treadwell on
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HAFA is a good program for the seller if only one loan ,little more time ,but too cover yourself go though it. if he gets approved for it ,the seller gets move out money too. Once you get them started no different than the rest of the shorts sales
With Wells Fargo you have to jump though all th hoops ,they won't cut corners at all.
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Permalink Reply by Samuel Hilbert on
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I figured it would be best...but I just had a terrible HAFA experience with BOA and AMS but I don't have an offer on that one. I just am hoping and praying I don't get in a similar situation. I am really surprised to see Wells Fargo immediately push you to HAFA and kick you out of the system. Seems inefficient to me but thus is Wells Fargo...
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All servicers who are participating in HAFA are required to review short sales for HAFA eligibility first- especially since Treasury began withholding WF incentive money. Lol. Much of your experience will be based on who does the HAFA review. As far as BoA goes, AMS is a nightmare, and REDC isn't much better, but Prommis is pretty good- at least in my experience. :) At least BoA has the Twiiter resource, which is awesome. For WF, if it's a Fannie or Freddie you can escalate through the HAMP Solution Center if needed. I think you're going to be okay on this one. :)
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Permalink Reply by Elva Branson-Lee on
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Samuel, remind your sellers that the trade off for thos HAFA benefits is exactly 120 days in which to complete the short sale. If it is not done by then, WF can and will require the seller to complete a deed-in-lieu. I have just recently experienced this. Even though you have a buyer in place now, things change over the course of the several months that it takes Wells to approve. I had 2 buyers fall out in that time period (one could not get his funds due toi lender guideline changes, and the other did not like the inspection results) and now, the 120 days are up and they are not allowing a short sale at all. They want the deed-in-lieu.
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Elva, If your seller does not want to do a deed-in-lieu through the HAFA after 120 days, you can cancel the HAFA short sale, wait for an offer, and start over in Traditional mode. Deed-In-Lieu is designed to offer those sellers in areas where properties are not selling to give the house back to the bank, and still receive their relocation costs and deficiency forgiveness. If they want to continue short selling, they can, you just have to start over with the Traditional program.
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Permalink Reply by Tara Samney on
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Tara- Are you sure about this? I recently had a HAFA short sale and the contract the seller signed was very specific that once she signed she could not cancel- it would go to deed-in-lieu or be sold under the listing price assigned for the HAFA.
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Hi Tara. :)
I'm sure. The thing to remember is that the seller still owns the property, therefore, they can do whatever they want with it. The bank cannot force them into a DIL if they choose not move forward with the HAFA sale. That being said, the alternative is to lose the relocation assistance, and possibly the forgiveness of deficiency, so why wouldn't a seller want to agree? From their perspective, they don't usually care if a buyer gets it or the bank, as long as they are no longer held responsible.
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Just as a followup to this if anyone comes across this post in the future with similar issues...I went ahead and went through the HAFA route and actually had an approval letter at 32 days from the day my offer got signed around. It ended up being one of my fastest short sales...especially with Wells Fargo ever. I'm a huge fan and my sellers are excited to get the surprise "relocation assistance" check next week after closing. If only all short sales went this well...
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Permalink Reply by Janet Kleen on
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Samuel, Did you list first or did WF give you a list price to market property?
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