I Just like to share this email from BoA.... Please note the Changes...
As Bank of America continues to enhance the short sale process, real estate agents will notice changes when initiating a transaction in Equator, beginning March 11.
What Is Changing:
New fields will be required when initiating short sales in Equator. Agents should be prepared to provide the following information regarding the loan and the homeowner's situation:
How This Change Will Improve the Short Sale Process:
Providing this information upfront will help Bank of America identify if the homeowner is eligible to participate in the federal government's Home Affordable Foreclosure Alternative (HAFA) program. If the homeowner is eligible, Equator will generate a message informing the agent that the homeowner must contact Short Sale Customer Care at 866.880.1232 to discuss their interest in the HAFA program. Although several attempts to contact the homeowner will be made, agents are encouraged to ask the homeowner to contact Bank of America as soon as possible, which will speed up the process.
Actions for Agents:
Additional Information:
For HAFA eligible loans, agents cannot move forward in the process until Bank of America has established contact with the homeowner. The traditional short sale process will continue for loans that are not eligible for HAFA. Although agents may be an authorized third party, per Treasury guidelines, the HAFA program requires the homeowner to independently acknowledge interest in a HAFA short sale.
Once contact has been established with the homeowner, they will be asked additional questions to confirm their eligibility for HAFA. These questions include: whether they have participated in a modification program, have a desire to sell their property and if they agree with the short sale program they are pursuing.
HAFA has many benefits for homeowners including:
It is recommended that agents discuss all options, including HAFA, with the homeowner before marketing the property. If interested, homeowners should contact Short Sale Customer Care at 1.866.880.1232 to determine HAFA eligibility.
Please view the updated HAFA guide for enhanced information regarding the HAFA process.
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Good information Donna.
HAFA worked for me. My buyer offered on a home. I thought it may be a HAFA candidate. The listing agent didn't know the HAFA guidelines but was willing to listen to me. She checked and discovered it was qualified for HAFA. She submitted our offer with the A-RASS and we had a counter in 34 days from contract date; one counter; one counter to the counter; and an agreement within 36 days.
On the lenders counter to our counter they said they agreed but the listing agent would have to cut her commission, which she was not willing to do, and she shouldn't. I sent her a copy of the new guidelines and she promptly told the 1st that they could not cut her commission. The 1st backed off.
The lenders know that not all agents know the guidelines and they are looking to take advantage of that lack of knowledge.
I have a question you may be able to answer. Does the Treasure Dept pay the $3,000 seller assistance, and the up to $6000 for junior liens, or does the 1st pay that out of the sale proceeds?
Hello: Bill
It would be the Treasurey Dept that pays the $3000, but the 1st lender pays the junior liens.
Bill Travis said:
Good information Donna.
HAFA worked for me. My buyer offered on a home. I thought it may be a HAFA candidate. The listing agent didn't know the HAFA guidelines but was willing to listen to me. She checked and discovered it was qualified for HAFA. She submitted our offer with the A-RASS and we had a counter in 34 days from contract date; one counter; one counter to the counter; and an agreement within 36 days.
On the lenders counter to our counter they said they agreed but the listing agent would have to cut her commission, which she was not willing to do, and she shouldn't. I sent her a copy of the new guidelines and she promptly told the 1st that they could not cut her commission. The 1st backed off.
The lenders know that not all agents know the guidelines and they are looking to take advantage of that lack of knowledge.
I have a question you may be able to answer. Does the Treasure Dept pay the $3,000 seller assistance, and the up to $6000 for junior liens, or does the 1st pay that out of the sale proceeds?
Thanks Donna.
There is an aggregate cap of $6k now, so the lender, depending on how close they are to their net, can elect to pay the only junior any amount up to that 6k. Then the junior can elect to accept, negotiate, or not accept and kill the deal, as I understand it.
Hi Bill
Although the 1st lien gives a cap.... sometimes the junior lien may not accept it so you may have to go back to the 1st lien holder and let them know negotiate with them to give the junior lien something to pay off the loan.
Have you heard of the Co-Op short sale? This is another recent development. It is BOA's version of the HAFA. You initiate before a PA is offered (they won't consider it if you already have an offer). Once you have approval from BOA, they have an appriasal done and they set the price. You can drop price every 20 days and if the property is unsold after 120 days they re-appriase and reprice the property. Sellers don't have to be 30 days late as long as they have a hardship and may not need to contribute to get the deal done. Sellers also get relocation assistance. The seller has to go through HAFA qualification first though.
I'm trying to get approval on my first one right now. The department hasn't even approved theior first one yet but this could be a good option especially since you get assigned a person and don't get stuck in Equator.
On another note, with a HAFA, if the second agrees to the amount they get paid from the first, do they also give up their right to a defficiency? I haven't had a HAFA with a second yet and would LOVE to know the answer to that one.
Great info to have.
It's my understanding that if the 2nd participates in the HAFA with the 1st that they must comply with the guidelines and give you the right to deficiency.
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