I have a client who has a choice between the Co-op short sale and a HAFA. The vendor, AMS Services is suggesting a HAFA since the seller can get $3,000 instead of $2,500 in moving expenses. It seems they're asking for a lot to go HAFA since my seller owns his own business.
What are you thoughts on which one of these is a better way to go in general?
Thanks!
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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.
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.
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.
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.
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.
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