I am the buyer in a short sale that we have been waiting for more than 3 months for approval. We just got word that the bank has to qualify the sellers for HAFA (even though the sellers do NOT want it).
We've been told the file is complete and that the HAFA qualification should take a week. Everything I've read about HAFA indicates that the sellers would have needed to request that.
Is it normal for the bank to go through this process even when the sellers do NOT want HAFA?
Any expertise you can offer is greatly appreciated!
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I contacted our agent and asked for clarification as to why the bank is qualifying the sellers for HAFA since it appears the sellers do NOT qualify for HAFA and that they can in fact opt out.
Agent responded that the bank is "required to see if it qualifies for HAFA" even though we know they don't qualify.
This makes no sense to me but from what I understand the banks don't necessarily do things that make sense. Has anyone heard of this happening? I'm wondering if the bank negotiator is a newbie or something and he has made a mess of the file.
This is our dream home and I'm willing to wait for it but I don't want to wait only to have things fall apart.
yes it is required, but the seller can call in and opt out any time.
Now I'm really questioning what is going on. None of this is making sense to me. Maybe you all can help me sort this out. Here are the basics:
A. We put our offer in at beginning of November 2011. Offer was accepted and short sale pkg was sent to bank around 11/14.
B. 2nd had terms at beginning of December (but still had to wait on 1st anyhow)
C. Two weeks ago the negotiator said he would "have it completed" the following day, then NO COMMUNICATION.
D. Yesterday we were told the bank realized that they missed a step and have to see if sellers qualify for HAFA program.
Sellers have not lived in the home for more than 2 years and renters currently occupy the home and are SUPPOSED to be moving this week. Our agent says no BPO has been done yet as well.
This all seems very strange to me but this is my first home purchase so I don't know what "normal" is for a short sale.
Are there questions I should be asking? I'm really starting to question if we are being given honest answers.
Thanks for all your help!
They will NEVER qualify for HAFA from what you've described (2 years non occupancy) If there is a second lien even more chance for decline. Whomever it is negotiating the short sale does not know what they are doing. Urge them to have the sellers opt out of HAFA or terminate your contract.
Yes. It's completely normal. A lot of servicers just automatically start enrolling homeowners into the HAFA program. I'm not a fan of HAFA but if the sellers opt to enroll, there isn't much you can do. So long as the valuation has been done, the approval shouldn't take too long as long as there aren't other factors affecting the sale.
To my knowledge, the BPO has not been done yet. I do know there are tenants in the home, but the sellers do not live in the home.
As far as we've been told, the sellers do not want the HAFA program, but the bank is doing it anyway. It seems odd that the bank is moving forward with the HAFA qualifying when the sellers don't want it.
The sellers have the right to opt out of the HAFA program by calling the lender and telling them they want to proceed with a traditional short sale.
Becky is right on. The sellers can choose to opt out.