I'm on the buying side of a transaction where the listing agent is telling me that the seller is completing a HAFA Short Sale and that HAFA has determined a maximum total costs for the sale to be no more than 10% of the purchase.
This max 10% seller cost of sale would also include the $3k incentive and closing cost credit to the buyer.
The contract stipulated 3% ($7k) be paid towards buyer closing costs and with this 10% cap, the max amount would be $3700.
Sounds like moreso a reduction in the buyers closing costs to meet the lender net, than some 10% maximum stipulated by the HAFA process.
My buyer would increase the price in order to get all of their closing costs paid, however listing agent is stating 10% rule will not allow for price increase. Sounds incorrect to me, but I'm open to being wrong.
Can anyone clarify if this 10% maximum exists?
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Replies
The lender will normally need to NET 88% percent of market value. But this can vary depending on the investor guidelines.
The listing agent should not have submitted a contract asking for 3% in concessions with a HAFA deal.
Increasing the purchase will not make a difference.
There are of course exceptions to all things short sales.
Why not work on getting the buyer's lender to reduce some costs?
Maybe you can find more info here;
shortsalesuperstars.com/group/hafahomeaffordableforeclosurealternative