Blog

We’d heard rumors. Sightings whispered by weary agents. Pleas from desperate homeowners. Tons of mailers, news clippings and emails touting the elusive prey.

But we’d never actually seen an honest-to-goodness closed HAFA short sale. Until today. When we officially closed escrow on such a deal and secured $3,000 relocation assistance and a deficiency waiver for our seller.

Can’t say it was too big a deal. Took longer, and we had to restart twice because the lender messed up the process in the beginning. The forms were different. Many people wonder why more homeowners haven’t taken advantage of the Obama Administration program. On the surface, it looks like a great deal:

• $3,000 for the seller to relocate
• Waiver by the bank to seek a deficiency judgment for shortage
• No cash contributions or promissory notes required
• $1,500 to the bank/servicer for admin and processing cost, and up to another $2,000 for investors who distribute up to $6,000 to junior lien holders

So why aren’t HAFA program closings dominating the short sale landscape?

For us, it might have more to do with where we live and work. Southern California is prone to conditions that make HAFA deals difficult. Values here are higher than the national average, and a great number of distressed homeowners seem to have HELOC 2nd TDs with banks that are unwilling to settle for $3,000.

It’s more likely, though, that this is just another case of an inefficient government program created by lawmakers with little or no hands-on experience in the real world. Many servicers still don’t have their guidelines down or processes streamlined.

Hopefully, for the sake of so many homeowners in distress, it’ll get easier. Until it does, agents have to remain vigilant and resourceful and educated. There is no room in this space for agents who aren’t committed to seeing the task through. Their clients’ financial futures depend on their skill and doggedness to complete the task.

(Brian Bean is a real estate broker and ambassador for Helping A Million Homeowners, a nationwide organization that is committed to helping alleviate the financial stress that so many homeowners face today. He can be reached directly atBrian@DreamBigRealEstate.com.)

Brian Bean
Real Estate Professional
www.DreamBigRealEstate.com
www.IEShortSalePros.com
www.HelpingAMillionHomeowners.com

http://s2.wp.com/wp-content/themes/pub/inove/img/blockquote.gif";); background-color: rgb(244, 245, 247); border: 1px dashed rgb(204, 204, 204); background-position: 3px 3px;">

If one advances confidently in the direction of his dreams,
and endeavors to live the life which he has imagined,
he will meet with a success unexpected in common hours.

Henry David Thoreau