Replies to This Discussion

Permalink Reply by joe beauchamp on October 4, 2010 at 11:11am

Your statement is ambiguous "that states that reason as a denial". So, what was the reason stated? I'm guessing that possibly the explanation which you received explains why this other reason was picked. For instance, he shouldn't be rolling in cash and the person is using the fact that with the money that he has now, he would have to be unemployed for 9 months to bring it down to the acceptable level for HAFA. [I don't usually pay much attention to their rules unless there is a reason, so I'm just giving that example - I do not know that the seller cannot be rich and get HAFA, just assume there is some check in there.]

But, you say that the homeowner meets the qualifications - so my guess above cannot be correct, right? I have not (yet) had to fight a HAFA decision - I have one file in each HAFA program right now - and they are going slowly. So, I can make 2 suggestions: that HOPE number on the letters, give them a call. Probably useless, but I don't know; and the agency overseeing HAMP - I believe I read about someone going to them for crazy HAFA things being done by banks.

I hope that helps..

Permalink Reply by Smitty on October 7, 2010 at 11:07am

If your homeowner is still unemployed, they can't do a HAFA short sale as they will have to make mortgage payments during the process. Homeowner's TOTAL monthly payment PITI and/or HOA dues MUST EXCEED 31% of thier GROSS MONTHLY INCOME.

Permalink Reply by joe beauchamp on October 7, 2010 at 1:08pm

Not sure that is a safe assumption. If the process takes 3 months and they can borrow or have 3 months worth of payments, why can't they be unemployed? Most likely not the case because they are probably desperate at this point, but you never know..


Smitty said:

If your homeowner is still unemployed, they can't do a HAFA short sale as they will have to make mortgage payments during the process. Homeowner's TOTAL monthly payment PITI and/or HOA dues MUST EXCEED 31% of thier GROSS MONTHLY INCOME.

Permalink Reply by Smitty on October 8, 2010 at 5:27am

If they have no savings and no income, that is likely a reason for denial. I'm not saying if they have a lot of money in savings they would be denied, but it's likely if they had a lot in savings, they may not have missed payments in the first place.

I'm only speaking from my experiences with unemployed homeowners. Most don't have a dime in savings. Some HAD lots in savings and used it all to avoid losing their home and they STILL are being threatened by the lenders.