Hello, I am hoping someone can help me.  I listed a short sale and Wells Fargo is the owner of the loan and American Servicing Company is the servicer.  When I initiated the short sale in Equator I was told my client must be HAFA qualified first.  This process is done outside of Equator.  Well to make a long story shorter, I was just notified by HAFA that my client does not qualify.  The reason according to Wells is she has the ability to make her mortgage payment and the debt to income ratio came in lower than is required. My client's hardship is that she has to move to Denver and cannot afford to pay rent their and pay her mortgage plus the $210 HOA monthly fee.  She cannot rent her home here and make enough to cover her mortgage and HOA, plus pay for someone to maintain the property, etc.  She has a lot of credit card debt, but she has made all her minimum payments and her mortgage etc.


My question is, can Wells make up their own qualifications for HAFA?  If Wells agrees to participate in the HAFA program, can they make up their own qualifications?  HAFA no longer requires debt to income ratio limits, and they don't have to be late on their payments, and she may, in the future, when she moves no longer be able to make the payments.


Any advice?

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Is it a Fannie or Freddie Loan?

Neither, Wells Fargo is the investor.

Thank you Kevin for your help.  I have read the matrix and we have provided all that the matrix requires. Wells has already done the "appraisal". She will be delinquent when she moves and can no longer pay rent and her mortgage.  Her income to debt ratio is 61%. Her mortgage is a first lien originated on or before 2009 and her current principal balance is less than $729,750.  She has documented her financial hardship by showing that she cannot afford to pay rent in Denver and her mortgage payment here along with her HOA monthly fee, evidenced by the Hardship Affidavit and RMA, hardship letter, etc.  I will make sure that she has a copy of all credit card and car payment statements, just in case they are not all stated in her credit report.  I am at a loss as to why she does not qualify for HAFA, unless it is the credit report not showing all her debt, like you mentioned. 

Thank you for your advice


Kelly

I agree with you, Wells is making their own rules for HAFA which does not make any sense. I went through the same problem. I escalated the problem with HAFA and they didn't help. Sometimes I have to agree with the Republicans... there are too many people receiving salaries from the Government and not getting their jobs done and perfect example is what is going on with HAFA.

If someone has conexions with Obama's office, please tell them something needs to be done. Not possible one tax payer gets paid for HAFA while the other can't.

I have one with WF/ASC and they are refusing to give 10% to second lien (even though RASS states that they will give up to 10% or 8.5%, whichever is less) and are not giving the $3000 incentive.  They say the verbiage says that the "may" be entitled to relocation assistance and the second "may" get x amount....

Yikes!

 

"Please note that in addition to Treasury’s standard HAFA eligibility requirements, 

Wells Fargo must adhere to investor and mortgage insurance guidelines as well as all
applicable laws and regulations" - https://www.wellsfargo.com/downloads/pdf/homeassist/hafa.pdf

If they found her income/debt ratio to be sufficient .. I would look over her financial worksheet to find out if that is true.  I have found in the passed that many times they ask for 'gross' Income which is before taxes.  Thirty-percent of that money the borrower never sees!

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