When it comes to HAFA, do I need to do something to see if my clients qualify or is it automatic? Last time BofA contacted me and asked if my sellers wanted to apply so the could get the cash. Don't want to deny anyone that opportunity. Thanks!
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Unfortunately I agree with you guys. HAFA is not as good as everybody would like to think. I have exact example of how HAFA does not work. My seller was rejected by Freddie Mac for HAFA short sale, because he lost a job and did not qualify for unemployment benefits, so they told us that because he does not have income, he does not qualify for Freddie Mac HAFA short sale. Nice ?........ But to answer your question : To make sure that bank knows you are trying to get HAFA short sale, first of all- ask Title Company to include $3000 "moving expense" on HUD and I always ask my seller to fill out "Request for Modification and Affidavit" from HAMP. This is kind of like application for either HAFA short sale or HAMP loan modification.
Normally, the lender will advise if the owner qualify for HAFA. It definitely have its pros and cons. Its great that the deficiency is waived and the owner/seller get $3K at closing. The downside is. the process can lengthy depending on the lender. As for BOA, it willd depend on which vendor that HAFA deal is assigned to. Different BOA vendors have different timelines.
Good question, the only HAFA sales that I have done the lender automatically put the seller in the HAFA program even though we asked to not be put in the program. HAFA is a joke so dont get your hopes up in thinking it is a good program
Yes, my experiences were lender led too, Jeff. But in one, it caused such delays that the home went to foreclosure, and the other, the seller did get the $3k, but it sure was a hassle. I agree it's not at all what it was promised to be, but I hate to deny my sellers the opportunity to get that extra cash they so desperately need IF it's an option that will NOT ruin the closing success of the sale. That's where I get confused...when to try and when not to.
I'm wondering if the webinars for this site cover these kinds of issues?
Have a great day!