Replies to This Discussion

Permalink Reply by Kent Dills on September 9, 2010 at 2:04pm

Dee,

Unfortunately the foreclosure scheduled within 60 days of application is indeed a disqualification for a Fannie-flavored HAFA short sale. See the attached document.

email me at [email protected] and I'll give you a copy of the Fannie HAFA reference doc (Announcement SVC-2010-07) or you can go to their website and get it yourself.

You'll find the specific reference at the bottom of page 3.

Kent

Permalink Reply by Ann Trieb on September 9, 2010 at 3:05pm

Correct... This has always been a part of the HAFA program and I believe it is part of the HUD program too (which is what HAFA was loosely based on.) While HAFA does represent an "alternatives to foreclosure" option, it is not a "last-minute foreclosure rescue" option. Fortunately, you may still have time to do a short sale and avoid foreclosure - just not this particular program.

Permalink Reply by Elise Fay on September 9, 2010 at 5:39pm

Dee

I have this same issue with Merrill Lynch. My client had a foreclosure date that is set for 9/28. Since the Fannie Mae HAFA guidelines were not officially rolled out until 8/1 I had to wait to contact the bank about that program. I called on 8/2--just shy of the 60 day window, and I was repeatedly told that they were not participating and had no knowledge. Well after several attempts, I contacted Fannie Mae in DC. Basically told on Merrill Lynch and another bank! They did contact the servicer and now they are reviewing the file....BUT Fannie did mention the 60 day window to me as well. I then explained that I called as soon as the program was rolled out. How can you claim to help homeowners when a good chunk of them do not even qualify because you have put in that window of 60 days. I politely told her that those guidelines were ridiculous.

Well she seemed to understand and I have now received an offer that I will submit on Monday. I was told 2 days ago, that once my other docs are complete (they are missing a few things) that they will go ahead and order the BPO They don't know about the offer yet. They did tell me that they would rather do the short sale than to foreclose and they will do everything they can to postpone the date.

I believe that like all programs that come down from above, these are guidelines and if the servicer and Fannie want to postpone it, they can. I am sure they are just trying to eliminate all those last minute submissions, and rightfully so.

Fannie can take up to 2 weeks to respond or address the issues, but it may be worth a call. Don't give up. I will keep you posted on my progress and you do the same. Good Luck.

Permalink Reply by Ann Trieb on September 9, 2010 at 5:48pm

They can certainly postpone the sale. There is no question that they have the ability to postpone the sale no matter what type of program is being requested.

The point is, that this program is introduced as help for homeowners to avoid foreclosure. Foreclosure proceedings begin with the re-assignment of the loan to a trustee, or with the recording of a notice of default. At that point, you are "in foreclosure." At that point, a program to help you avoid foreclosure would not be one of your options. But a pre-foreclosure sale of another type is usually still definitely something that you can benefit from.

Permalink Reply by Elise Fay on September 9, 2010 at 5:54pm

You do have a point but....on another HAFA short sale that I am working on, even while we were in the early stages of the program, they did issue a foreclosure date. It says (and I am not quoting) that they can still proceed with foreclosure proceedings, that does not get stopped, but they will postpone the date to continue working on the program and/or short sale.

I think they do that because if you fail to abide by the timeframes and program terms and conditions, that date will become "hard". They don't want to encourage homeowners to start the process just to avoid "going into foreclosure". Maybe it all depends upon what your state laws are...I am in Arizona.

Permalink Reply by Ann Trieb on September 9, 2010 at 5:56pm

That's where it feels like a dichotomy - you are so right. But I don't think they are allowed to assign a sale date after providing a RASS can they? While they are reviewing, they can and must continue collection attempts and securing of their interest. Once they formally agree to participate in writing, they cannot assign a sale date as I understand.

Elise Fay said:

You do have a point but....on another HAFA short sale that I am working on, even while we were in the early stages of the program, they did issue a foreclosure date. It says (and I am not quoting) that they can still proceed with foreclosure proceedings, that does not get stopped, but they will postpone the date to continue working on the program and/or short sale.

I think they do that because if you fail to abide by the timeframes and program terms and conditions, that date will become "hard". They don't want to encourage homeowners to start the process just to avoid "going into foreclosure". Maybe it all depends upon what your state laws are...I am in Arizona.

Permalink Reply by Elise Fay on September 9, 2010 at 6:31pm

Ann--here is the copy and paste from the Fannie Mae HAFA Directive. I think we are both right??

Initiation of Foreclosure

Servicers are reminded that, while evaluating a borrower’s eligibility for or pursuing a Fannie Mae HAFA short sale or DIL, the servicer must still follow Fannie Mae requirements related to the initiation of foreclosure for defaulted mortgage loans. However, provided the servicer has received a fully executed HAFA Short Sale Agreement and all supporting documentation and mortgage insurer approval, if required, for mortgage loans in Georgia, Missouri, Texas, Virginia and other states in which a foreclosure sale would otherwise be scheduled prior to the end of the marketing period, a servicer must delay the initiation of foreclosure until such time as the sale would be scheduled after the marketing period has expired. For mortgage loans secured by properties in any other state, the servicer must not delay the initiation of foreclosure proceedings unless it receives prior written approval to do so from Fannie Mae and the mortgage insurer, if applicable.

Conduct of Pending Foreclosure
A servicer must continue to pursue a pending foreclosure while evaluating a borrower’s eligibility for a Fannie Mae HAFA short sale or DIL, waiting for the timely return of the signed agreement and all supporting documentation, and for the duration of the agreement. The servicer must advise the borrower that the foreclosure proceedings will continue while the property is listed for sale, but the terms of the HAFA Short Sale Agreement will be honored as long as the property is sold before the HAFA Short Sale Agreement expiration date. The servicer must suspend any foreclosure sale scheduled:

Permalink Reply by joe beauchamp on September 9, 2010 at 11:43pm

You can try to get the sheriff sale postponed (past the 60 days) - BofA generally will not do that until it is w/in 3 or so days, however, you might be able to explain to the rep and negotiator that it would allow you to go through HAFA.

Since most negotiators at BofA are real pinheads, I suggest you actually talk to the negotiator - ask about things which he finds interesting, be a pal, then ask if he could request the postponement so that your sellers could get that little bit of cash, etc. This is supposed to go to Fannie Mae according to BofA, however, according to Fannie Mae, the 1st postponement is up to the bank. There is a good chance that someone higher up will screw you over on this. That is what they are best not - not problem resolution but problem creation.

After that fails, try John Ciresi. Although I have caught him towing the company line (he passed on that the MI wants $XX when, in fact, there is NO MI and he knows it), he could be helpful - but more likely will send you the reply to him saying it is against policy.

After that fails go to the office of the president - you can look around this forum and find the number also the guy who supposedly can walk on BofA water.

You clearly need **extra** consideration. You need to plea a strong case for helping the seller and a decent hint, if possible, of ramifications for not helping - like the seller is only interested in HAFA, no HAFA, he plans to sit in the house and when the foreclosure time arrives, will do a BK and drag this out for a long time. That particular line could be weak - the guidelines are Fannie Mae and BofA will likely simply point to them - they are good and pointing blame everywhere else - wish they spent that resource on just doing the short sales!

I've had no luck with Fannie Mae - their reps have been the worst of the worst - they have donuts to eat and you are on their phone (no incentive). But if you can get someone high enough in Fannie Mae, you might be able to plea a very fast sale via HAFA and a long drawn out expensive foreclosure BK process if not. If you do find some reasonable inroad into Fannie Mae, please post it. Anything to get BofA to be responsive would be useful to me/us.

One slight possibility, although you probably hit your wall here, is to talk to the fannie mae hafa people - it is to their advantage to get the deal - possibly they have some postponement pull with fannie mae.

The most unlikely desperation attempt would be to contact the attorney for the sale and see if you can get them to postpone it - yeah...well...what's left?

Permalink Reply by Elise Fay on September 10, 2010 at 3:29pm

Sorry to hear you had bad experiences with Fannie Mae...Mine have all been very positive and I have found all the reps, even at the escalation level, to be very kind and eagar to help.

Permalink Reply by joe beauchamp on September 11, 2010 at 7:04am

A joke, right? I've only called a few times - and that was after ignoring the advice of others (we process short sales all day long, not a part time fling for me), and I had to conclude that they were right. Less than zero help. One or two, maybe a bad experience. Beyond that, no, that's the way it works. Puzzling that you got something out of them. Hm...

Elise Fay said:

Sorry to hear you had bad experiences with Fannie Mae...Mine have all been very positive and I have found all the reps, even at the escalation level, to be very kind and eagar to help.

Permalink Reply by Elise Fay on September 11, 2010 at 5:18pm

Are there any "part time" agents negotiating short sales? That sounds like an oxymoron to me? It is a full time job and we know that all too well.

Permalink Reply by joe beauchamp on September 11, 2010 at 7:21pm

I guess I'm missing something. I do not sell or show houses. I process short sales all day. It's fine that realtors want to waste time on the phone doing short sales, it isn't efficient and not what they like to do - make money buying and selling houses. You can't do both full time and whatever you do part time can't be done as well as you do it full time. I assume most people in these forums are part time - they sell houses, enjoy that and can't spend all day on the phone pushing the banks to work the short sales. I hadn't thought that there are really many full time short sale processors out here. Are you saying most of the people in these forums do not buy and sell houses but spend all day dealing with the banks for short sales? The sort of questions that I see certainly doesn't imply that - seem to be from people who rarely see a short sale. Hadn't thought of the possibility, so I could be wrong...

Elise Fay said:

Are there any "part time" agents negotiating short sales? That sounds like an oxymoron to me? It is a full time job and we know that all too well.

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