I have a question for all the California Realtors. I am trying to process a Cal HFA short sale. Cal HFA owns all the notes, the 1st TD and 3 "quiet 2nds". The owner has jumped through all the hoops. HUD credit counseling, Spring Board Credit counseling, Loan Mod...everyone told him he could not afford the home anymore and to short sell it. After 3 months of trying to negotiate with Cal HFA, they have declined it 3 times. Each time they say he makes too much money and that the majority of his expenses do not qualify in their formula. We have had 2 budgets approved only to have items later disapproved as we substantiated additional expense that put him into the negative. In other words, every time we show he has to spend more than he makes, they dis-allow a previously allowed expense.
Cal HFA keeps telling me they do not have to follow any of the rules the banks need to follow because they are a Government Agency and took no TARP money (even though they did receive TARP money)
I have not dealt with Cal HFA but it is "Government Guidelines" so this entity of the government is stating that they do not need to follow government guidelines? This figures. (sarcasm).. Keep hassling them, and or contact your local congressman, I have had some success with mine helping me and my clients.
Thank You, I have not yet tried the Congressman route.
Hello. I had the exact same situation as you with all notes held by them. Fortunately or unfourtunately I had Mrs. Seller who was laid off from a large corporation while she was pregnant and Mr. Seller was transfered out of California. So for them, they were a 59 day close and fairly easy. What is their response when they disallow expenses that were previously accepted? What are their hardship reasons? Have you dealt with just one negotiator or are you having to deal with someone new each time? In my situation, Mrs. Seller was given a severance package and Mr. Seller made good money but due to the transfer out of state they received a fairly quick approval.
Thank You for the input. My seller did loose his job, but then found another, but at a 25% reduction in income. His commute is still about the same distance from home so we cannot use that as a hardship. I have dealt with 3 separate negotiators/underwriters, and 2 different Supervisors. The last Supervisor I talked with was the most restrictive.