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

Comment

You need to be a member of HAFA - Home Affordable Foreclosure Alternative to add comments!

Comment by Julia Huntsman, 562-896-2609 on March 5, 2012 at 1:52pm

I recently closed a short sale where the seller's only income was Social Security, and only assets were retirement. he qualified for the HAFA because his monthly payment far exceeded his retirement income. You need to look at the guidelines on makinghomeaffordable.gov.

Comment by Sara Mehrpouyan Los Angeles CDPE on March 5, 2012 at 1:35pm

Wanted to get some opinions, if homeowners are elderly & retired & only income is monthly Social Security- I think that they should be able to qualify for a hafa short sale. They do have some savings but that is considered their retirement money. Lender is B of A. Any feedback is appreciated. Thanks. 

Comment by Michael Schneider on January 23, 2012 at 6:39am

Thanks Kevin.

Comment by Kevin - Greenville, SC on January 23, 2012 at 6:33am

According to my understanding of Fannie Mae HAFA guidelines the Borrower just has to be reviewed for HAMP.  Doesn't matter at which point in time it comes.

Comment by Michael Schneider on January 23, 2012 at 6:27am

Loan is Fannie Mae, seller applied for a HAMP  loan mod, but did not finalize the mod, so it was neither denied nor initiated.  House is owner occupied. PITI is 38%.  Seller accepted a purchase offer.

Nationstar is stating that by Fannie guidelines, the seller is ineligible for HAFA, because the purchase contract was accepted, while the loan mod was under review.  In order to be eligible for HAFA, Seller must have either been denied for the mod or failed on the mod.

Do you agree with this?

thanks.

Comment by Kevin - Greenville, SC on January 20, 2012 at 4:58am

The removal of the 31% Guideline only applies to non-GSE Loans only.

Comment by Sean Wilder on January 20, 2012 at 4:54am

That change was for Non-GSE loans only.

Comment by Petra Norris on January 20, 2012 at 4:49am

With the removal of the 31% Debt-to-income ratio why is it that homeowners are still being declined because they don't meet 31%?  I had three HAFA short sales that were declined 2 fannie mae and 1 freddie mac.  Any idea?

Comment by Kevin - Greenville, SC on December 18, 2011 at 4:46pm

Jim,  Have you contacted the MI Company to discuss?

Comment by Jim Stewart on November 15, 2011 at 8:51am

We have a HAFA approval with Wells. 2nd is with Citi. Citi says they would take the $6000 HAFA offer but PMI company is rejecting.  Foreclosure is in two weeks which means Citi PMI company gets nothing.  Makes zero sense.  Any thoughts or suggestions?

 

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