TO APPLY FOR HAFA, THE SELLER NEEDS TO BE NOTIFY BY THE LENDER BEFORE WE INITIATE THE SHORT SALE?

WE AS AN AGENTS NEGOTIATING THE SHORT SALE HAVE TO REQUEST A HAFA PACKAGE OR IS THE LENDER WHO MAKES THE DECISION IN WHOM QUALIFY FOR HAFA, SENDING THE SELLER A PACKAGE?

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Permalink Reply by Jeff Payne on September 13, 2011 at 6:28am

Wally, I have avoided HAFA as much as possible and have only worked and closed 2 HAFA sales.  Both of those we submitted our short sale package and the lender deemed the seller eligible so we went the HAFA route.  Didn't do anything until we already marketed and got an offer on the property.

I believe there is a way to intiate before working the short sale.

Permalink Reply by Smitty on September 13, 2011 at 11:30am
Yes.  I agree with Jeff.  HAFA can be initiated after the sale is already submitted.  The lender will likely notify you if the seller qualifies. I avoid HAFA like the plague.  It was rigged to protect the lenders...not sellers.  I just had a homeowner who was all the way through a traditional short sale opt not to do HAFA.  If he had, we would have been backed up another 4 weeks and he wanted to be done with it.  The minute I sent in the letter that he wasn't interested in HAFA I had an approval within HOURS.
Permalink Reply by Becky Martin on September 13, 2011 at 1:20pm
If the investors are Fannie Mae or Freddie Mac you cannot accept an offer first, in fact some lenders will ask you to "pull the listing" until you receive their listing price....BOA just told us that on a Fannie loan this week:(
Permalink Reply by Jeff Payne on September 14, 2011 at 3:04am
Becky, what BofA told you is not true.  One of the two HAFA sales that I did, Freddie was the investor and BofA was the lender....
Permalink Reply by Becky Martin on September 14, 2011 at 2:15pm
It was the service HAFA vendor AMS for BOA that told us on a Fannie loan do not accept an offer...then on another file I have working on HAFA with BOA thru AMS and the investor is Merrill Lynch a division of BOA they said we could accept an offer.....SO Confusing!!!
Permalink Reply by Eric Mieles on September 13, 2011 at 7:07am

Wally,

 

First have you determined by the HAFA guidelines if the seller is eligible? Is it primary or investment? Owner occupied or rented out or vacant? I believe off top of my head mortgage has to be below $749,000, originated before 2009. Do they have MI on the loan? I only ask because HAFA is a voluntary program and would hate for you to go alllll the way only at the end to find out the MI doesn't play HAFA.

Is HAFA what the seller wants? If yes and they meet the eligiblity requirement I suggest you get your

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all upfront and add it to your normal ss package. This will allow you to be prepared. If it's BOA they will promplt you to have the seller call right away if they are eligible once you initiate.

Good luck!

Permalink Reply by Joshua Gayman on September 13, 2011 at 3:04pm
I believe you can submit for HAFA yourself, but the reality of it is that if the lender wants to do HAFA, they are going to let you know.  They only do it when it is better for them, just like everything they do. I am with Jeff that I try to avoid HAFA as much as possible, as it seems to usually just complicate the whole process and add time to the file.
Permalink Reply by Eric Mieles on September 14, 2011 at 2:25pm

Becky,

What is happening is that you are submitting the file to BOA and it's HAFA qualified and since you don't have an offer it gets routed to the outsourced company AMS. They handle the HAFA shorts without an offer, regardless of the investor.

If you hold off to initiate, market the home, get a contract and submit through BOA if eligible BOA will have homeowners call in. if they qualify and you have an offer the file will get routed to LRC or UTLS. They will work it through EQ just like a normal short and issue you tasks to complete. You will need to upload

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Dood Frank

4506T

Utility Bill

I know it can get confusing. Just try to avoid the little mistakes that can cost you lots of time. Check to see if the MI company plays HAFA upfront or else you will get all the way to the end and find out after 4 months not doable or if you are with AMS, no offer, work the HAFA then get an offer they could shut you down and reroute you to LRC/UTLS only to start all over again.

Good luck

Permalink Reply by Holly B. Long on September 14, 2011 at 6:02pm
Two weeks ago I submitted an offer/short sale package - with the HAFA information and a note that seller wanted to be reviewed for HAFA eligibility.  Last week - Chase advised me that they had pulled this seller from HAFA review because there was an offer and since Freddie Mac was the investor - the new guidelines say that you can not apply for HAFA if you have an offer.  They offered a counter to the offer price and the buyer would not meet the counter on the property.  When I spoke to Chase to tell them they could close the file - I was advised that now since there was not an offer - I could re-submit the application for my seller to the HAFA program.  Evidently this is the new guideline for Fannie Mae and Freddie Mac - that you can not apply for HAFA if you have already accepted an offer.

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