HAFA max seller costs of 10% - does this exist?

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?

Views: 168

▶ Reply to This

Replies to This Discussion

Permalink Reply by Bryant Tutas on August 25, 2012 at 12:46am

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

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************