I am representing the buyer on a short sale. We are being told the bank is Chase and it it going through HAFA. There is a second lein, however, I am unable to obtain that information from the Listing Agent. We went under contract with the sellers at the end of May. We have only been told "we are in the HAFA stage." By now, I expected more information. Any suggestions or insights? My buyer is getting anxious about the process, given we don't even know if the package has been submitted to the bank. Thank you!!
Who is the lender? Was the HAFA short sale started before the offer was received?
If you do not have an open line with the listing agent I would stop by their office and meet face to face and have your list of questions. The agent does not have to reveal anything to you but they can make you comfortable knowing they have closed at least 25 short sales or on track to do so. If they have no idea to your questions you may want to ask your broker to get in touch with the other broker. If the offer was submitted in the end of May at the end of June you will not know more then they are telling you now. Then come July 15th you should have more information. I would ask first if a BPO or Appraisal has been done on the property by the bank.
Hi Nuala. I've listed a couple of shortsales with Chase as the lender but they were not HAFA. All of my HAFA shortsales have been BOA. HAFA was touted to be a quick approach to short sales but unfortunately that has not been the case. I have actually found the HAFA shortsales to be more problematic than regular shortsales. Then when you have multiple liens that further complicates the process. In the case of BOA they don't actually own most of their loans, they only service them for other investors. With BOA shortsales they assign them to other sub servicers to process, so then you have several layers of red tape. I've also had my BOA shortsales transferred 3 or more times to different servicers, and having to start the process all over again. My advice would be to have a list of questions to ask the listing agent, and depending on his answers to those questions your client can make the decision whether to walk away or not. It's possible that the listing agent can only tell that it's in the "HAFA Stage" because that is the only answer that he is getting from the lender. You need to educate your buyer that it could be 3 or more months before there is a response. If the buyer is not willing or able to wait then they need to walk away and concentrate on traditional listings or REO's.