Does Wells Fargo require that any home owner that is wanting to do a short sale go through the HAFA qualification first? Or do they only require it on loans that are actually owned by Wells? On my latest short sale listing I was told that my client has to go through the HAFA qualification process, even is she does not want to. Do all lenders now require the HAFA qualification?
Thank you for your help.
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Kelly,
From what I know only loans that are not FHA, VA or USDA can apply for HAFA.
I believe WF is required by the Fed settlement to determine investor particpation in HAFA. If WF actually owns the loan, it is automatically offered. Why would the seller Not want HAFA participation-automatic deficiency waiver, $3,000 relocation money?
Wells denied her qualification for HAFA and said we could not opt for a traditional short close. I have other prospective short sale clients that may not qualify for HAFA and why waste our time going through all that, if we don't have to? There hardship does not have to do with being insolvent.
Who is the Investor? Fannie, Freddie, FHA, VA or other?
Hi Kevin,
It's me again. The loan is not owned by Fannie, Freddie, FHA or VA. It is owned by Wells Fargo. American Servicing Company services the loan. My question is not about that particular short sale transaction, that is over, for now. I am asking in general, does Wells REQUIRE every prospective short sale homeowner to have to be qualified by HAFA, or can they, up front, opt not to participate in HAFA, but instead do a traditional short sale? And, while I am asking this question, do other lenders, or freddie or fannie require the HAFA qualification as well?
Wells Fargo reviews ALL Borrower's to see if they qualify for HAFA at the time of Short Sale initiation.
As far as I know all borrowers with Conventional Loans (i.e. not FHA, VA, USDA, etc.), where the investor on the loan participates in HAFA fully or partially (i.e. Fannie Mae, Freddie Mac, etc.), have to be reviewed for HAFA before doing a traditional short sale.
Okay, that is what I was wanting to know. That information helps me a great deal.
Thank you!
Doesn't the HAFA qualification only take about 24hrs? Usually what happens is they tell the borrower they are eligible through equator and to have the seller call to initiate the HAFA acceptance. The next day I'll get a 'declined for HAFA' notice and the tasks will begin..
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