Price Adjustments allowed in HAFA program?
I have a short sale with a first (Chase) and a second (Chase) that is HAFA approved. We've been listed at the HAFA approved price for 90 days with no offers. We're due for a new BPO, so I asked my negotiator to order a new valuation. She said that she couldn't order a new one because we were participating in HAFA, and that they wouldn't be able to reduce the price regardless until the 120 days were up. She said that our options were to withdraw from HAFA, order a new valuation and proceed as a normal short sale, or wait until the 120 days were up and possibly participate in the HAFA DIL program (I don't think so).
My question is this: is it true that you can't reduce the price from the initially approved price on a participating HAFA short sale? What are others experiencing on this issue?
Replies to This Discussion
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Permalink Reply by Sean Wilder on
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The answers is..It is completely up to the investor. Everything related to determining the value and/or min net allowed is up to the investor. I had one with Chase earlier this year that the investor denied the offer and refused to allow a value dispute under HAFA. The seller was forced to back out of HAFA and proceed with a value dispute outside of HAFA. In that case they would only accept an appraisal and the second buyer was willing to do that. It was accepted and closed but the seller did not get a full release. They did all of this under the advise of their attorney.
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Permalink Reply by Elise Fay on
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My experience is that they will not renegotiate the price. The one I had was with Wells. As time goes on and the market changes and u can no longer get that price you may want to opt out. I got a few extensions then they kicked me out of the program and the seller let it go into foreclosure. It was a long 6 mos. But HAFA did not budge...especially as prorations change over time and net to the bank changes even at the agreed upon price!
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Permalink Reply by Lori Young on
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I have two HAFA files where value is reduced every 30 days. Probably wed it for the inflated BPO value that came in.
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Permalink Reply by Melissa Brown on
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Jesse, I'm experiencing the same problem the B of A price from the BPO is WAY to high, in fact more than the seller paid for it it 2007. I've asked for a reduction several times, and they gave me a measly $4,000 reduction, but we've still only had 1 showing in 90 days. We're running out of time.
One agent advised me to just go ahead and reduce the price, without getting B of A approval. Has anyone done this before? What are the repercussions?
If this goes to deed-in-lieu, does the seller still get relocation assistance?
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Permalink Reply by Jesse D. Moore on
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Melissa - if you follow their rules, then after 120 days they will offer a HAFA deed-in-lieu. They still pay the seller relocation assistance, and I think that they even pay the listing agent a 2-3% commission. I prefer to have my clients avoid foreclosure, even if it's DIL, so I'm reducing the price and with my seller's permission, withdrawing them from the HAFA program. HAFA is now a four-letter word that I will encourage most short sellers to avoid if they want a real shot at closing.
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