Chase/Freddie HAFA timeline
I was hoping someone could give me some insight on how long it takes for from start to finish in the HAFA process with Chase/Freddie Mac.
Here is where we are. House has been on the market for 3 years. Original loan was for 282K. The house at that time was appraised at 400K. Market crashed and are now upside down. After missing two payments, we submitted HAFA paperwork to Chase for a short sale through HAFA beginning of May 2011. 5 weeks later we were told we did not qualify as we were not yet 60 days past due. Resubmitted paperwork and re-initiated HAFA process on 8/8/2011. The house is currently listed at 239,000 and we received a solid offer at 230,000. Yesterday we received another offer for the asking price. We owe 262,000 with 8K HELOC with Regions. We cannot sign any contract until we are approved for HAFA by Chase, or else it will nullify our eligibility(makes no sense to me). We have a very proactive realtor that calls Chase weekly. Since it has been 30 days since our submission of our paperwork and not yet have been assigned a negotiator, he called Chase and escalated to a supervisor named Steve. Steve stated that he will escalate the file, and we should have a negotiator by the end of week (today). He told our realtor he would call him as soon as a negotiator is assigned.
My question is what is the average wait time from submission until approval by Chase for HAFA once a negotiator is assigned? Not concerned about closing time frame because we have been packed for 3 years and can be out in 3 days. I hate to lose this offer.
Here is where we are. House has been on the market for 3 years. Original loan was for 282K. The house at that time was appraised at 400K. Market crashed and are now upside down. After missing two payments, we submitted HAFA paperwork to Chase for a short sale through HAFA beginning of May 2011. 5 weeks later we were told we did not qualify as we were not yet 60 days past due. Resubmitted paperwork and re-initiated HAFA process on 8/8/2011. The house is currently listed at 239,000 and we received a solid offer at 230,000. Yesterday we received another offer for the asking price. We owe 262,000 with 8K HELOC with Regions. We cannot sign any contract until we are approved for HAFA by Chase, or else it will nullify our eligibility(makes no sense to me). We have a very proactive realtor that calls Chase weekly. Since it has been 30 days since our submission of our paperwork and not yet have been assigned a negotiator, he called Chase and escalated to a supervisor named Steve. Steve stated that he will escalate the file, and we should have a negotiator by the end of week (today). He told our realtor he would call him as soon as a negotiator is assigned.
My question is what is the average wait time from submission until approval by Chase for HAFA once a negotiator is assigned? Not concerned about closing time frame because we have been packed for 3 years and can be out in 3 days. I hate to lose this offer.
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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Miriam. Waiting on HAFA approval without sending in a contract can be a losing battle. You guys should negotiate the best deal you can get, sign the contract then submit a complete short sale package to Chase including the HAFA ARASS Form. You do need to wait to be HAFA approved first. Do you know if this is a Fannie Mae loan?
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Permalink Reply by Miriam on
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Bryan,
Thank you for your responesChase is the servicer and Freddie is the investor. According to Freddie Mac guidelines, we cannot have a signed contract before being approved for HAFA.
Here is the Freddie Mac Servicer info link. Section 5 covers that lovely guideline. Very frustrating!
http://www.freddiemac.com/singlefamily/service/docs/hafa_servicer_q...
I was told today we have a negotiator now assigned and was a given a direct line, but our realtor was only able to leave a message on her voicemail.
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Ok, I have scoured the internet and have found virtually nothing on timelines with Chase/Freddie/HAFA. With that being said, I am going to begin posting as we go through this process so that if anyone has the same issues/questions out there.
Here is where we are thus far:
8/8/2011 - Re initiated HAFA through Chase/Freddie after being denied due to not being 60 days past due in payments.
8/22/2011 - Realtor spoke with Chase. File is in review awaiting new negotiator
8/25/2011 - Received solid offer, but cannot sign contract as it will nullify contract. Buyers willing to sit on sideline.
9/6/2011 - Received a second, better offer, still cannot sign any contract.
9/7/2011 - Realtor escalated our file since we still did not have a negotiator. Received call from supervisor said we would have a
negotiator by 9/9/2011.
9/9/2011 - I called and yes, we have been assigned a negotiator as promised (pleasantly surprised)Was given contact information.
9/12/2011 - Realtor spoke to negotiator. He has worked with her before, and says she is one of the best he dealt with at any bank. She requested additional documentation which we were able to provide within an hour. Realtor confirmed receipt of documents with negotiator and was told we should hear something within in the next 2 weeks.
... and that is where we are, more hurry and wait. At least we are beginning to see some form of progress. Will update as more info comes in.
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You are suppose to have an answer within 45 days..The hard part is determining when the clock started ticking --because it didn't necessarily start the day you submitted your documents for HAFA...It is when someone at Chase got around to working the file......And you are correct that if Freddie is the investor - if you sign a purchase agreement - you are kicked from HAFA.....So the questions are- how important is the $3000K at closing if approved from HAFA and most important -relative to HAFA is what state you are in and if your primary goal in applying for HAFA was to be assured of no deficiency judgement....If you are in a state that doesn't allow deficiency judgements and you want this sale --then I would yell "take me out of HAFA consideration" and go for the short sale. If your buyer walked on you or if the short sale was declined by your investor...without an offer you could reapply for HAFA.......You just have to weigh the odds of whether you think they will waive the deficiency if you drop out of HAFA now and your state allows deficiencys..If you are a hardship case and don't have "significant" assets - Chase is probably going to waive deficiency with or without HAFA...Only you can make the decision if you want to risk losing a buyer by waiting for HAFA approval...or take your chances on the deficiency.
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Thanks Holly,
We are in Tennessee, so Chase can come after us. Our realtor has told us the same as you have that since we have little in the way of assets,if we opted for a traditional short sale, they more than likely Chase will not pursue the deficiency. The 3000.00 would help tremendously; however, if we are denied approval or the BOP is too high, we will opt for the traditional short sale.
Apparently the BOP was done the first time we submitted, but of course they will not tell us what that number is yet. Since we now have a negotiator who actually returns our realtor's calls, we are hoping to have an answer either way soon.
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Here is the latest update:
9/16 - Received a letter from Chase stating they needed the first page of our most current tax return as the copy faxed was blurred.
9/19 Re-faxed return
9/20 (today) Our realtor spoke to the negotiator, and we have been approved for HAFA. Waiting on a new appraisal that is scheduled for this week. Moving along, but hoping the appraisal does not come in too high.
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Permalink Reply by jennifer mullen on
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Miriam,
Can you update us on progress please? Thanks!
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