I need to know....

I understood that if we have a seller that had a failed HAMP loan mod the next step for them would be the HAFA short sale program.

I have a seller with a failed HAMP mod and Bank of America stated that they are not eligible

for HAFA because the loan is a FHA loan. Has anyone heard of this loophole? 

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HI sidney,


From my understanding, B of A is correct, HAFA pertains only to non GSE loans (GSE being Freddie or Fannie).  Freddie and Fannie have their own versions of HAFA. 

If it's an FHA backed loan, then you'll need to assemble all the documents needed from the seller, hardship letter, bank statements, earning statements or profit and loss, letter of authorization for you to talk to the bank of their behalf, financial worksheet, tax returns, listing agreement, and I include a recent copy of their utility bill to show they're still living there.  Get all those to the bank asap and start marketing the property. 


Once the bank has all the documents they should order the BPO then send you an approval letter.  Hope this helps..




Count your blessings! FHA short sales are better directed and, in my experience, have been shorter than HAFA short sales....PLUS, you get the added benefit of not having to the hear that the investor has opted out of the short sale program. Gather all of your seller's information and docs, forward them to BOA, along with the hardship letter. BOA will actually order an FHA certified appraisal, which will determine where your list price should be. You will also be given a "sliding scale" of acceptable net proceeds for HUD. If you're a praying man, then get on your knees. MAKE SURE THAT THE APPRAISER KNOWS YOUR MARKET. Have it set up to where the appraiser MUST go through you to gain access to the property and MEET them at the property with your own comps!!!! This is an absolute MUST because everything will ride on this appraisal and if it comes in too high, then you're dead in the water. Your only remedy will be to wait 4-6 months until another FHA certified appraisal can be ordered. In fact, you will not be able to provide BOA with another appraisal refuting the FHA appraisal.

Got through to HUD and they have there own program like HAFA,got a pre approval with $1,000.00 to the seller. Not the $3,000.00 they hoped for but better than 0 and a speedy reply.
I'd much rather do an FHA short sale than a HAFA any day of the week!.....and twice on Sundays :)



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