I've closed 5 HAFA short sales in the last 2 months, but they haven't approved the full $3,000 seller incentive. The more common reason is the $3,000 has to be allocated to other liens that used to be routinely paid by the lenders. In one case, they claimed the relocation didn't fit the criteria.
In all my cases the deficiency was forgiven.
My questions are:
Are other Realtors getting a better result?
Could it be I am not appealing or negotiating properly?
Are other Realtors running into the same pushback from the lenders?
Please don't be diplomatic, I need to know how I can improve. Please pile on :-)
Thanks,
Dave Halpern, Louisville KY
Tags:
Dave
It is my understanding that the $3000 is not negotiable. It is a part of the HAFA approval and there are other guidelines for how much the other liens can receive. I have had 2 recent short sales, where the investors told me they would approve the short sale, but not pay out the $3000 HAFA incentive. In the end...the deficiency was waived but....it was never approved thru the HAFA program, for some last minute reasons.
Personally I think that these investors don't want to come under the scruitny of the government regarding these programs. I think the $3000 is a bonus but really getting the defiency waived is probably more important to sellers. In fact while trying to submit a short sale thru the HAFA Program, negotiators have asked me "why does your seller want to go thru HAFA...is it the $3000" Obviously they are clueless as to the appeal of this program.
So no, I do not think you are doing anything wrong. I think these investors would rather not be accountable to the feds and their programs...just approve it outside the guidelines but still waive the deficiency. I have closed 3 others early on and my clients got the $3000, but not anymore. I think things have changed since the inception of the Program last April.
Elise Fay, Glendale AZ
Elise,
Thanks for your detailed and quick response, it is much appreciated.
Like you said, for many the $3,000 is a big part of the appeal. Eventually the word will get out to the public that it's not reliable which could cause a perception of lack of credibility f the whole HAFA program, just like the word is out that loan mods are not reliable.
I wonder if the servicers still get the gov't incentive money even when they don't approve the $3k incentive to the seller.
Elise Fay said:
Dave
It is my understanding that the $3000 is not negotiable. It is a part of the HAFA approval and there are other guidelines for how much the other liens can receive. I have had 2 recent short sales, where the investors told me they would approve the short sale, but not pay out the $3000 HAFA incentive. In the end...the deficiency was waived but....it was never approved thru the HAFA program, for some last minute reasons.
Personally I think that these investors don't want to come under the scruitny of the government regarding these programs. I think the $3000 is a bonus but really getting the defiency waived is probably more important to sellers. In fact while trying to submit a short sale thru the HAFA Program, negotiators have asked me "why does your seller want to go thru HAFA...is it the $3000" Obviously they are clueless as to the appeal of this program.
So no, I do not think you are doing anything wrong. I think these investors would rather not be accountable to the feds and their programs...just approve it outside the guidelines but still waive the deficiency. I have closed 3 others early on and my clients got the $3000, but not anymore. I think things have changed since the inception of the Program last April.
Elise Fay, Glendale AZ
Are you sure these are really approved under one of the HAFA programs?
It is possible that the secondary lien holder rejected participation in HAFA, so the 1st actually approved the file outside of HAFA, but approved on terms similar to HAFA, except for the $3000 seller incentive?
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