I just found out on July 1st that FNMA is now making all of their servicers work their HAFA short sales and BofA had to pull my file from UTLS who has had the file since early April with an offer. I had to upload the entire file in Equator and wait for the file to be assigned to a negotiator and basically start all over on the clock again. Now I really thought I knew HAFA, but I was just told today that the BPO will not be ordered until HAFA gives the approval on the short sale.
Am I missing something? Since when does HAFA give an approval when there is an offer in place without having a valuation done ahead of the approval.
someone help me out:
WHO is this HAFA everyone speaks of? HAFA is a set of Treasury guidelines. So when someone is waiting for 'HAFA' to do something, I get confused.
The servicer needs to follow HAFA. Not surprisingly, they seem to get confused real easy. So we have the HAMP Service Center for HAFA escalations. They've been fairly helpful explaining it to the servicer. And interestingly, they are a part of Fannie Mae in the same building even).
Tamilyn, have you prepared and ARASS with your offer? The servicer will say they prepare the ARASS, but the HAFA guidelines state that if YOU submit the offer with an ARASS, the servicer has 30 days to respond to the short sale request. Then when they don't, and you escalate to the HAMP Solution Center, they will give the servicer 30 days to respond. After it all gets moving again..
Bottom line: there is no way to make a servicer do something they really don't want to do (HAFA).
The good news is, you know who the investor is and if there is one investor on the planet who is more likely to comply with HAFA, it's probably that quasi government owned investor called Fannie.
I have been fighting BOA since they barfed on 1 of my files around 7/1. I have been unable to yet get them to give a clear policy for HAFA FNMA w/offer deals. BOA claims to offer the same thing but not involve HAFA, however, now you must be rejected by HAMP before you can be accepted for this "HAFA". I tell them that THEY are HAMP - the reps don't know this. Still no policy.
By calling HRD (Home Retention Department) - OH, BTW, now called "Consumer Advocacy"..?? after about 4 calls I found someone who knew HAMP. If your seller has not been rejected for a loan mod, you can no longer get HAFA from BOA if your investor is freddie or fannie. You need to have him apply for a loan mod (1st qualification, they can be no more than 30 days late in any payment for the last 12 months), then when rejected, you may now apply for the HAFA SS at BOA. He told me the process often takes 2 months.
So, BOA changed from their negotiator looking in the payment history and seeing that the seller could not qualify for a loan mod to now requiring the seller to submit for a loan mod, having multiple people in that dept process the loan mod and 2 months later reject it -- so, now you can as them to do the HAFA SS. Brilliant, eh?
There is your "job creator" company that politicians keep saying we need to sacrifice for... <sigh>
I don't know what strange things you are seeing, but BOA cannot live a day w/o a BPO in place. Once the docs are in and a negotiator is assigned, the BPO is ordered. Now, for the HAFA sub-companies, all the work is really done by BOA. They send requests to BOA to order the BPO, to calculate the NPV, to order the payoff and finally to hit the CALCULATE button to get an answer. If something is not getting done, it is very likely one of these that is sitting on some BOA negotiator's desk where we cannot get to them and they have no incentive to do the task. BOA reps don't know this, they are told it is done by UTLS or AMS, etc.
With the varied nasty problems that I've seen since mid-March, I have to wonder if this is a FNMA game or a BOA game going on. I see things which point to one and then the other - insane counters, to this HAFA mess.
LRC was the 1st HAFA sub-co at BOA - seemed decent, now gone, UTLS was 2nd. BOA is best at pointing fingers and not solving issues. My guess is that each sub-co in turn will disappear as BOA uses them to say why BOA is not getting things done. Can you blame them? Record profits this year...
Whatcha talkin bout Willis?
LRC gone??? They better not be gone - they have one of my files. :)
I'd say stay on top of them - a lot more than you used to. I tend to try to straighten things out - and with BOA, that seems to be a 120% time job..?? I went back and forth between LRC and SS Reps as LRC people told me that they can handle HAFA w/o offer (which, thanks to absurd BOA numbers, LRC turned each of my sales there into - maybe 1 actually made it through..hmm.) The BOA SS reps seem to be the best informed and most willing to get info. They said NO, LRC is not assigned HAFA w/o offer. Which is true, for BOA.
During this period, my responses from LRC got worse and worse. They had been OK from the beginning up to around this time. Toward the end, it took 2 wks to get LRC to kill a file so that I could resubmit it to actually be processed over at AMS.
So, just because LRC answered your question last week, don't think they won't just walk away and not answer if/when BOA pulls the plug on whatever thing LRC is doing for you. Stay in touch, completely. Good luck!