Replies to This Discussion

Permalink Reply by Celeste ODea on April 14, 2011 at 2:38pm

The HAFA is for primary residence only; where the Co-op is for investment properties. You should be pretty easy for you to determine pretty quickly which program the seller would be eligible for. With both of these programs, the bank dictates the listing price. If the property does not sell in 120 days, the seller must voluntarily give their deed to the bank - Deed in Lieu of Foreclosure. Neither one is known to work except to the benefit of the bank because they avoid all the costs for the property to go to foreclosure. If you are given a "realistic" list price, then try the program that fits your seller. If it's his investment property, he can only go Co-Op. The homeowner can opt out of either program at any time and proceed with the traditional short sale.

Permalink Reply by Nate Gerard on April 14, 2011 at 2:47pm

I think Co-Op CAN work for investment properties but that is not the ONLY purpose. I have another seller who is owner occupied and doing a Co-Op short sale with good results so far.

 

Thanks for the heads up on the deed in lieu possibility. They told me that after 120 days they do another appraisal and reprice the home.

 

I'm curious to hear others' thoughts on this too.

Permalink Reply by Celeste ODea on April 14, 2011 at 3:16pm

Co-op Program is primarily for non-owner occupant properties.  Cannot use it if it's your primary residence.  Why would you when you would get $3,000 with the HAFA vs $2,500 with the Co-op.  It's one or the other.  The bank's normal marketing time is 120 days. Be careful if you get close to that date and don't have an offer.

Permalink Reply by Mayra Espinosa CDPE, HAFA, SFR on April 14, 2011 at 3:27pm

 

I think HAFA is a better choice, if the property is your client principal residence. Also seller is a business; seller may want to walk out of the short sale without worrying about his lenders going after him for deficiency Judgment. That is my personal opinion; just explain to him the advantages and disadvantages of each short sale program, so he can pick the option that best works for him.

Permalink Reply by Tina Hartman on April 14, 2011 at 7:38pm

Co-Op can work for primary residences. Our seller was denied for the HAFA program, but then qualified for Co-op. It is pretty similar to HAFA, but I have been told that you cannot have an offer on the property. Personally, I wouldn't recommend either, but if you have to choose, HAFA would be the better choice.

 

By the way, the Co-Op procedure is extremely slow (believe it or not it moves slower than HAFA!). Also, AMS is the company that handles the Co-Op files so you have to call into that very inefficient company and then once you get to Customer Service you have to request to get into touch with someone who handles Co-Op. As of a month ago, there were only 3 people who were handling these files!

 

Also, here's a tip ... if you can't make your way through AMS, call BAC and complain to them. That can help you move forward.

Permalink Reply by Suzanne White on April 18, 2011 at 12:42am

My client is currently being allowed a Co-op short sale because she does not qualify for HAFA.  Lender is BOA and I will be working with REDC as the third party for BOA.  This will be the second Co-op short sale with BOA.  The first one did not set a price and it was through AMS.  The third party assignment is usually driven by investor.  In my state, the biggest advantage of HAFA short sale and Co-op short sale is for the client, no pursuit of deficiency as well as the relocation money. 

Permalink Reply by Nate Gerard on April 18, 2011 at 12:53am

Hi Suzanne,

 

I'm curious, why did your first Co-Op short sale not set a price? Did you proceed like a traditional short sale at that point by setting your own price and reducing at regular intervals?

 

Also, once you had an offer, did BOA give feedback within 10 days?

 

Thanks!

 

Suzanne White said:

My client is currently being allowed a Co-op short sale because she does not qualify for HAFA.  Lender is BOA and I will be working with REDC as the third party for BOA.  This will be the second Co-op short sale with BOA.  The first one did not set a price and it was through AMS.  The third party assignment is usually driven by investor.  In my state, the biggest advantage of HAFA short sale and Co-op short sale is for the client, no pursuit of deficiency as well as the relocation money. 

Permalink Reply by Suzanne White on April 18, 2011 at 1:33am

The client initially did not qualify for HAFA due to income restrictions.  Once we got very close to a foreclosure date I received an email stating the homeowner would be allowed a Coop Short Sale.  Gave terms of short sale and how long we would be given but no price.  I spoke with the negotiator at that point and we discussed where pricing was and showing activity.  He stated just let him know when we got an offer.  Got an offer a couple of months later and am currently working through this one.

Permalink Reply by Sara Mehrpouyan Los Angeles CDPE on April 18, 2011 at 8:38am

I have one that is Bank of America with Fannie Mae. It is a primary residence and my seller was told that he would NOT receive any relocation fee through the Co-Op. If he wants to try for a POSSIBLE relocation fee then he should go through HAFA. The Co-Op for Fannie Mae was through REDC.