HAFA - Home Affordable Foreclosure Alternative

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HAFA - Home Affordable Foreclosure Alternative

Let's get this group going to track how this program is helping homeowners avoid foreclosure.

Members: 626
Latest Activity: Jul 11, 2017

HAFA Short Sale Information

 

 

Click The Button Now To Hire A Short Sale       Superstar To Support You.

 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.

 

HAFA Overview for Agents 

Bank of America HAFA overview 

Forms and Guidelines

 

RMA.pdf

RMA Instructions.pdf

New Dodd Frank.pdf

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

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

Tags: Short, Sale, Citi, Fargo, Wells

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

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

Tags: Holder, Lien, 2nd, HAFA

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

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

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

Tags: FannieMae, Low, Too, Appraisal

Comment Wall

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Comment by Tara Samney on November 26, 2012 at 11:48am

Does HAFA allow a counter to their counter offer?  I am the listing agent on an IndyMac (DeutscheBank investor) property.  Negotiator sent it on for review and HAFA came back with a counter that is higher than the contract price.  I am not sure the buyer will be agreeing to that price.  Is a counter allowed to HAFA's price or is it firm?  Thanks

Comment by Sara Mehrpouyan Los Angeles CDPE on November 9, 2012 at 9:30am

HAFA approved short sale (1st loan is with Pennymac) - they do not want to give full $8500 to 2nd loan. The first may pay UP TO $8500. Has anyone had a 2nd accept less than $8500 recently with HAFA? 2nd is Citi. Thanks. 

Comment by joe beauchamp on October 23, 2012 at 12:58pm

FNMA, FHLMC and non-GSE are 3 different HAFA's with different rules. I believe all are set to let you lower the price every 3 weeks. However, it is probably best if you ask for a BPO dispute form (asking for the rules or the form makes it harder for them to just brush off your request) and dispute the value.  Since you are sitting and waiting for a buyer, you are only losing time on digging out good comps and doing the write-up.

Comment by Jim Stewart on October 23, 2012 at 8:37am

I'm working on a BofA HAFA short sale where the appraised value is too high. Can the price be reduced at some point on HAFA listings?  Or am I just dreaming?

Comment by joe beauchamp on October 8, 2012 at 7:58am

Jim, Freddie and FNMA are NOT HAFA - they are their own programs. HOPE HOTLINE, etc. cannot help, so you probably have to go to Freddie directly. (They call them HAFA, I guess just to confuse everyone??)

Comment by Kevin - Greenville, SC on October 8, 2012 at 6:10am

Jim,

You can do either/or.

Comment by Jim Schneider on October 8, 2012 at 3:59am

I recently had a client declined for HAFA that I believe qualifies. For Freddie Mac owned loans, do you escalate to HAMP admin or Freddie Mac?

Comment by Cami Pinsak on September 24, 2012 at 5:54am

Anyone have Wells Fargo refuse to pay 10% of subordinate lien?  WF is saying they will only pay $6000 to second lien, even though total amount is $80000.  They are saying that the net to them doesn't meet investor net minimum. 

Comment by Marilu Chan on September 22, 2012 at 5:55pm

@Kevin , Jana and Lisa

The 2nd lienholder BofA is asking for $ 8500 and the debt is only $ 39500. Before it use to be a percentage with a max. which was the cap. So when HAFA the 2nd lienholder can ask the maximun regardless of the amount of the lien? and if this is the case can the buyer come up with the difference?

The first lienholder Nationstar just approved the SS and is giving the 2nd $ 3500 only.

Pls help.

Comment by Kevin - Greenville, SC on September 11, 2012 at 7:28am

It's up to $8500.  I'm unable to find any documentation that relates to 10%.

 

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