Interesting.  I have a BofA HAFA file that is in the initial marketing period. 

They gave us a price, and we have now uploaded an offer meeting that offer price.  Now they say they are ordering an appraisal....  huh? 

So the price can change is of course my question.  The answer is yes, the price can change.  My perspective is whether the price goes up or down is a bad thing because the property was advertised as a HAFA pre-approved short sale.  So, after a long non-productive discussion with an AMO rep (for BofA) about what the terms "pre-approved" vs. "approved" means under the HAFA program I am left disheartened about the HAFA program.  The servicers seem to be able to do whatever they want. I have yet to have one approve an offer in the 10 business days, and now this? 

The price in the short sale agreement is now subject to change too? 

So, in what sense does a HAFA pre-approval mean anything?  What are the benefits in CA (besides the $3000 seller assistance) if you don't have accountability on price or response times?

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Tni - I learned, as well, that BOFA pre-approved Coop sale isn't so, either.  I won't even advertise it as such. Mine took 90 days of going through an "approval" process.

Well I won't be advertising it as such anymore either.  Interesting that co-op has the same issue with BofA.

Co-op is one thing but I thought HAFA had some rules.  It is silly to say that someone has X days to sell their home without fear of foreclosure, and then burn up all those days approving an offer that meets their pre-approved terms.   And now this?

If we were beyond the initial marketing period I could see the point, but we are probably less than one month in.  It's ridiculous. Recently, I had a HAFA where I was working with the buyer and they changed the price (lower) on that one and it soured the deal as well because of course the buyers rightfully believed this was the "approved" price.  It is sad because they have basically gutted the intended effect of the program almost entirely.  I suppose in other states HAFA still has some bite, but in CA it's relevance is basically becoming a "get $3000 for the sellers if they (and the buyers) are willing to wait for it" program.

interesting...

You can read here and elsewhere of approvals being disapproved. I was only partially surprised when our signed HAFA agreement was declared invalid by AMS.  (Duh, signed, agreement, any of that mean anything to a bank?).

Remember the couple who had to start hauling things out of a BOA office before BOA would pay the judgement against them? Banks don't care, are big and bully everyone to get what they want.  What are you gonna do, sue them?  Get in line..

With short sales, you need to weigh your patience, sanity and time vs. the value of the deal and not get caught up in good faith negotiation from the bank or them doing just about anything legally or morally.  Just keep your sense of humor and keep going.  Those silly little banks - aren't they funny how they ruin the world economy and ignore agreements that they make?  There, don't you feel better now?  ;-)

Thanks for the inspiring words Joe. LOL.

I was just further disheartened at the gutting of the intentions of the HAFA program which is tax payer funded. 

But, you are right, I should be so over it by now.  :-)

And, I have seen worse too.  LOL.

 

We got a HAFA pre-approved list price on the listing (freddie mac) and it was high just like all of them seem to be. I asked for a price reduction and submitted comps to support the reduction. The comps showed the value to be less then 20% of the approved list price (per HAFA guidelines). BOA (AMS) rejected the price reduction request and stated that per Freddie guidelines, they had to have a certain price and were not allowed to go any lower, period. With only a few days to go until our HAFA expiration deadline, we received a full price offer. Today, AMS responds with a counter offer $4k higher than the full price offer we submitted. I informed the negotiator that this was a pre-approved listing price so how could they ambiguously raise the price on us now. The negotiator replied that they had the BPO updated and it came back higher, so the investor automatically requires them to match the new BPO. Has anyone else come across anything like this before? I thought the purpose of a pre-approved listing price was to avoid this type of situation. Apparently, it means nothing.. 

yep, sure have - heavy escalations for multiple screwups and delays and I've hit the same thing and the same sort of thing multiple times.  BOA + HAFA is double disaster.  You'd think by now they would get part of it right, but not often.

AMS is at the whim of BOA. BOA is somewhat at the whim of brain-dead politicians who "know best" about how to put together programs (HAFA), hence we communicate via pony express, etc.  You put it all together along with sometimes/often incompetent processing at AMS (which gets every OK from some hidden often obtuse team at BOA) and magic - here you are.

What the investor is doing makes sense. They "have been" lowering the list price because their stupid BPO "could be" too high and they are trying to get a buyer. But, a new BPO comes along, well, it must be accurate, so throw out where we are and start here.  It isn't a program of "gee, we were supposed to lower it and screwed up so we will make it up to you".  That is where you and I get burnt.

So, yes, it happens - usually when it should not, but BOA doesn't care to make up for screwing over the seller.  (My latest expired because of this, and they "forgot" that they were asking for an extension while I am still awaiting a price lowering from 2/23....

When was the valuation done for the recommended listing price of the HAFA SSA?

Never ever advertise that a Short Sale is Pre-Approved.  Many things could change throughout the process.

I got this today also.  A 'pre-approved' HAFA short sale is now going to take 3 weeks for offer approval from the investor. (HAFA guideline states max 10 days).  The rep said a pre-approved HAFA program just means they are pre-approved for the HAFA program.  The list price they gave us was just a recommendation based on guidelines.

Ha! Don't ya love it? Reminds me of the airlines - a couple of decades ago when I flew a lot more, we were behind this lady standing at the desk at the gate with the airline person patiently explaining to her that yes, she has a reservation but she has no seat. So, with BofA, you can have an approved sale price but not necessarily in this universe - I'm sure it is probably good in a universe nearby...  [And, yes, this bait and switch has been pulled on me, too..]

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