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 Thom Colby CA Brkr 888-391-5245 on January 12, 2011 at 4:21pm
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Letter from California Association of REALTORS to Treasury, FNMA, FDMC, etc.C.A.R._HAFA___Short_Sale_Comment_Letter_12-10.pdf
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Comment by Bryant Tutas on January 7, 2011 at 5:07am
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Hi Kathleen. Can you email me what you want added or changed? [email protected]
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Comment by Kathleen Lordbock on January 7, 2011 at 4:10am
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Can we get updated information on the header and also the new in 2011: we have new HAFA guidlines concerning income and timelines?
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Comment by Jim Schneider on January 2, 2011 at 6:15am
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Well "brother Michael" has done it again! what a great issue. It looks like they finally put some teeth into HAFA! I think the website may have had a change of location, because I couldn't use the link. Here is the document:
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Comment by Michael Schneider on January 2, 2011 at 5:11am
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Yes, Wendy, agreed. A must read for anyone working short sales.
Expect Treasury to publish performance reports for HAFA, probably this month. They will be dismal, I expect. Now Treasury can say they have made "mid-course corrections".
Personally, I think the $4700 per HAFA sale probably has near-zero incremental benefit.
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Comment by Wendy Smith on January 2, 2011 at 2:27am
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Mike,
thanks for the link - this is quite signifigant is some respects.
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Comment by Laura Rencher on January 1, 2011 at 9:37am
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Thanks Mike. AMS is the third party that handles Freddie mac loans for BOA..and that is what our loan is. I have talked to them at least 20 times over the phone in the past 4 months regarding my file. We haven't submitted any offers because they would bump us out of the Freddie Mac HAFA program. I have been calling AMS weekly for the past couple of weeks to try to see if the letter was uploaded so that I can get the list price for my agent. They repeatedly say we are approved but the documents have not been uploaded. So I think we are on the right track......just in some sort of administrative black hole....I think I may ask my agent to contact the negotiator to find out what the hold up is.
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Treasury modified some of the eligibility requirements for HAFA--31% PITI, owner-occupied, eliminated the max 6% UPB to subordinate liens, and clarified the 6% commission payment.
www.hmpadmin.com/portal/programs/docs/hafa/sd1018.pdf
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Comment by Mike Horton on January 1, 2011 at 7:27am
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Laura, be sure your agent calls AMS and talks to them to make sure they are the right BOA 3rd party. If the offer was submitted before you received an approval letter from BOA/HAFA sale with a already established list price, you will probably be denied from AMS and BOA will have to reassign you to UTLS which handles short sale transactions when they have been submitted without prior approval.
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After posting on Dec. 12, that we were approved for HAFA according the equator, as of right now, we still have no approval letter or contract. According to AMS, it has not been uploaded into their system yet. It seems like they could hire some sort admin. to scan and upload documents. I am at a loss to understand the way BOA functions. It seems like complete chaos....The upside is we continue to sit in our house not paying a mortgage. How crazy is that?
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