There are 3 HAFA's, all different - FHLMC, FNMA or non-GSE. Who is your investor? I've always found co-op no worse and usually better/easier than HAFA. You should ask an SS person for the differences. I would call in and hit 5 instead of 1 to get to the escalations staff. They are sharper and better prepared to help vs. regular SS reps.
I have a client that has just gone through the HAFA/Co-op Program with the Diversified Group @ BOA. They approved him for the HAFA program and gave us an approved listing price, which happened to also be our offer. Our client is also getting $5,000 in relocation assistance. It took about 30-days through the pre-approval and they are now reviewing the offer.
In the HAFA vs. Cooperative Short Sale arena, I almost always advise the seller to go Cooperative. For one thing, HAFA pays a maximum of $3,000. Although a Cooperative could pay only $2,500, often there is an HIN incentive involved which bumps up that payment to $5,000 or more; I've had sellers receive as much as almost $20K for the Cooperative. I love Cooperative short sales at Bank of America.
There is really no qualifying for a Cooperative, and there is qualifying for HAFA. The only reason I know of to choose HAFA is if the sellers are current on their payments and, if being current, they are still in danger of falling behind (so they qualify under the HAFA guidelines), then HAFA is better because under that particular set of circumstances, the bank is required to report the sale as PAID IN FULL. Which is huge huge huge for the sellers. No paid in full for less than agreed, which would indicate a short sale took place. The HAFA for a current seller would appear as a regular sale and no hit to credit. Think about it.
Bob, I'm glad you asked this question. Although, it appears that Co-Op is better, I was told by BOA that there is no guarantee that they will waive the deficiency. However, with HAFA it will definitely be waived.
Joe, thanks for the advice to talk to the escalations team. The rep appeared to be more confident about the programs!
Here are my main concerns:
Has anyone had a Co-Op short sale where the deficiency was not waived?
The loan is a GSERW - Merrill Lynch (Division of BOA)
I was informed that my client is not eligible for Streamline nor the HIN Cooperative. Therefore, they would only be eligible for the "traditional" Cooperative Short Sale (up to $2500) or the HAFA short sale ($3000).
Based on the information I've received, it appears that HAFA may be best for my client in this case. Anyone beg to differ or have more advice?
Also, it is my understanding that HIN expired on 9/26/13. Can anyone else confirm this?
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