HAFA - Home Affordable Foreclosure Alternative
Information
Let's get this group going to track how this program is helping homeowners avoid foreclosure.
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Latest Activity: Jul 11, 2017
HAFA Short Sale Information
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HAFA is now an expired program.
The escalation process for HAFA is easy and effective and works with all HAFA participants.
https://www.hmpadmin.com/portal/resources/advisors/escalation.jsp
Email: [email protected]
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Here are some documents that may help you understand the HAFA guidelines.
4506-T.pdf
Quite possibly because HAFA and HAMP have both lagged far behind in expected completions, the Treasury Department recently reviewed and eliminated some of the rules to make eligibility easier.
With the HAFA program being designed, in part, to catch and help those homeowners who fell out of the Home Affordable Modification Program. However, the program has had less than 1,000 short sales since its April 2010 launch.
Among the Treasury’s changes are that servicers are no longer required to verify a borrower’s financial information or determine whether a borrower’s total monthly mortgage exceeds the bar of the 31% debt-to-income ratio.
According to one Treasury spokesperson, “While this requirement has set the standard for mortgage affordability under HAMP, it is not as important for homeowners ready to transition out of their home. Eliminating this requirement further streamlines the process for homeowners applying to the program.”
Servicers are, however, still required to obtain a signed hardship affidavit.
Section 6.2.4.2, Chapter IV of the Handbook is amended to increase from $6,000 to $8,500 the amount a servicer may authorize the settlement agent to pay from gross proceeds to subordinate mortgage holder(s) in exchange for a lien release and full release
of borrower liability. Investors will continue to be reimbursed one dollar for every three dollars of short sale proceeds paid to a subordinate mortgage holder up to $2,000.
All borrowers must now receive a short sale agreement within 30 days of the request.
The best way to assure your short sale is not yanked for the homeowner to go try a loan mod after you are listed it is to .... make sure your borrower seek the HAMP program first, then HAFA. Also, if you run out of time (120 days) ask for an extension.
Discussion Forum
Only Shorting the 2nd Lien Holder-Wells Fargo 1st is CITI and investor is Fannie Mae.
Started by Jimmy Williams. Last reply by Brian Avery Mar 25, 2016. 2 Replies 0 Likes
Hello,1st Lien Holder is serviced by Citi, Fannie Mae is Investor, who has filed a LIs Pendance. 2nd is HELOC with Wells FargoCiti is not short in the sale, but Wells Fargo will be short. Will this…Continue
ONLY SHORTING THE 2nd Lien Holder GMAC- does HAFA APPLY?
Started by Kathy Dyer Realtor Rosevillle Ca. Last reply by Kathy Dyer Realtor Rosevillle Ca Apr 2, 2015. 4 Replies 0 Likes
I have a new short sale in Ca. We are only shorting the 2nd lien holder, GMAC. Can we do Hafa if the first is not being shorted? NON GSE.Continue
OCWEN participates in HAFA, but doesn't pre-approve the short sale???
Started by Jim Schneider. Last reply by Kevin - Greenville, SC Mar 1, 2014. 2 Replies 0 Likes
I just got off the phone with the short sale department at OCWEN, and they are saying that they still participate in hafa, but they don't have to issue a pre-approval letter. I thought that was the…Continue
Investors Turning Down Short Sale Because Their Own Appraisal Is Too Low
Started by Kathleen Sheridan. Last reply by joe beauchamp Oct 2, 2013. 1 Reply 0 Likes
I just had a investor turn down a HAFA short sale because the appraisal that they ordered is too low. It seemed spot on to me. Now they want me to sell the property as a regular short sale for an…Continue
Comment Wall
Comment
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Comment by Kevin - Greenville, SC on February 14, 2011 at 6:43pm
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Anyone know of a list of participating non GSE investors?
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Alan, I'm not sure if that is entirely correct -
HAFA does have provisions for when the borrower is deceased.
https://www.hmpadmin.com/portal/programs/docs/hafa/sd0909r.pdf
Unless a borrower or co-borrower is deceased or a borrower and a co-borrower are divorced, all parties who signed the original loan documents or their duly authorized representatives must execute the HAFA documents. If a borrower and a co-borrower are divorced and the property has been transferred to one spouse in the divorce decree, the spouse who no longer has an interest in the property is not required to execute the HAFA documents. Servicers may evaluate requests on a case-by-case basis when the borrower is unable to sign due to circumstances such as mental incapacity or military deployment.
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Comment by Alan Remigio on February 14, 2011 at 3:54pm
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Can't Kevin. HAFA takes care of the original parties to the mortgage. The mortgagor is no longer part of the mortgage & note.This is now a two legged stool and there are provisions in the mortgage to accomodate death. There simply is no agreement between any beneficiary, trustee, administrator, etc. that can bind them to the mortgage agreement.
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Alan, I have too closed a probate Short Sale. This client was interested primarily in HAFA though for the incentive.
Thanks.
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I have, Kevin. It will fall under a regular short sale since the mortgagor is no longer living. Best scenario is when probate is completed and trustee/administrator has court documents in hand. It can be a tedious process.
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Aida, It would depend on who the investor is.
But generally -
Non-Owner Occupied Exemption:
Vacant up to 90 days prior to:SSA or Alt RASS and Job transfer or new employment 100 miles or more and Not purchased another home within previous 90 days.
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Comment by Aida Gonzalez on February 14, 2011 at 3:00pm
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I had all reasons. The borrowers are living the property, as a primary, and i was told that the 'investor' donest participate with HAFA program. I submitted one package to HAFA department and the processor of the file told me: the offer is very low (thru HAFA) How much do you need to increase the offer i asked.. I was told $10 k.. but after telling this, suddenly she said, no, sorry this file donest qualify for HAFA, and your offer is good like it is now..
This was an example that thru HAFA they increased the offer, in order to have the money needed for the customer and for the second lien mtg, if the file has a second.
Which are the exemptions for the HAFA if the borrowers dones't ocuppy the property?
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Aida, What are the servicers reason for denial?
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I have never get any short sale approved under HAFA program, does somebody has any luck?
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Yes, for the 3K to the Estate.
I feel the reason most don't get approved is because of the lack of education of the servicer and or their reps (or because they have to waive their deficiency rights and they don't want too or Jr. Lienholders) And possibly the agents lack of understanding the program and they don't push the servicer hard enough for a RASS.
Not because of the program itself in most cases.
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