I just initiated my first Wells Fargo equator short sale and got immediately sent to the HAFA department (which coincidentally means I could get kicked out of Equator). I've had terrible experiences with HAFA and have a signed p&s with only the one Wells Fargo lien here. So far we are two days in and just stalled and I can't even submit the sellers financials that I have ready to go.
I've been told that my seller can call in and get removed from HAFA but obviously my seller would like the financial benefits of HAFA if it is a true possibility. The seller had qualified for a loan modification already but turned it down because it still wasn't going to meet their financial needs.
How is the HAFA program through Wells Fargo when you already have an offer? I have a good offer that I feel should go smoothly in a traditional short sale...so am hesitant to get tied up in a program just to attempt to make my seller a few dollars. How has everyone else's experience gone at this point?
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Hi Samuel,
Did your seller qualify for the HAMP modification? If so, and they are unable to meet the payment, they should easily get approved for HAFA, since they are virtually the same guidelines. Being that you already have an offer, it would probably take about the same time as the Traditional method, and offer your client the relocation funds. My opinion would be to go for it, but make sure you stay on top of the file to be sure it is being processed in a timely manner. :) Good Luck!
Btw: In theory, it should be a shorter timeframe to get approved, because they are supposed to use the documents from the modification to qualify the HAFA without additional review, so see if you can pursue that option for a quicker approval process!HAFA is a good program for the seller if only one loan ,little more time ,but too cover yourself go though it. if he gets approved for it ,the seller gets move out money too. Once you get them started no different than the rest of the shorts sales
With Wells Fargo you have to jump though all th hoops ,they won't cut corners at all.
Tara- Are you sure about this? I recently had a HAFA short sale and the contract the seller signed was very specific that once she signed she could not cancel- it would go to deed-in-lieu or be sold under the listing price assigned for the HAFA.
Hi Tara. :)
I'm sure. The thing to remember is that the seller still owns the property, therefore, they can do whatever they want with it. The bank cannot force them into a DIL if they choose not move forward with the HAFA sale. That being said, the alternative is to lose the relocation assistance, and possibly the forgiveness of deficiency, so why wouldn't a seller want to agree? From their perspective, they don't usually care if a buyer gets it or the bank, as long as they are no longer held responsible.
Just as a followup to this if anyone comes across this post in the future with similar issues...I went ahead and went through the HAFA route and actually had an approval letter at 32 days from the day my offer got signed around. It ended up being one of my fastest short sales...especially with Wells Fargo ever. I'm a huge fan and my sellers are excited to get the surprise "relocation assistance" check next week after closing. If only all short sales went this well...
Samuel, Did you list first or did WF give you a list price to market property?
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