We have had the HAFA (Home Affordable Foreclosure Alternatives) government short sale program for just about two years now. I just wanted to see HOW you guys think the HAFA program has worked so far? Do you think it has been successful in general or a miserable failure? De you think it is easy and simple enough to qualify for and execute? HOW could it be improved upon and most importantly, SHOULD it be extended after 2012?
I started a HAFA short sale in July of 2011. It was a Bank of America file and they used AMS. It could not go through Equator. We had to wait until 11/03/11 before we received the HAFA letter agreeing to participate before they would look at our cash offer meeting their required net. Within our 120 day time frame Bank of America then sold the note to SLS on Feb. 15th 2012. HAFA is a BAD JOKE
I have closed alot of them. The easiest ones have been the Lenders that have been working with the client on a mod and when that doesn't work, moves them over to HAFA. B of A has been a pain with their 3rd party jerks, but the last one I had with them, I went to the acceleration department and they pulled it from them. I keep hearing that they are getting rid of them. I don't know that it is getting easier. I think it depends on the lender. I think I have 4 or 5 in process right now. The first thing that I do with a short sale is see if it qualifys for HAFA and go from there. I would like to see it extended - it is a big help with the $3,000 and the forgiveness on the deficiency makes the seller's life easier. They are no more a pain than a regular short sale
Overall, I would say that HAFA is a good program in that it generally makes the banks more accountable. AMS (the servicing arm of B of A)however, have been terrible to work with on my latest HAFA deal. They are really incompetent and devoid of compassion.
HAFA is just simply misguided, by design. A voluntary program for investors and insurers, in which by participating they must waive their rights to collect. Makes no sense.
But, it has become easier to complete, primarily, I think, because the government has been successful at persuading the 1st to give the full $6,000 consideration. And, because the Investors have lowered their estimate of the value of their positions, so they are more willing to take the $6,000 and give up.
Still, I'm guessing that about 5-10% of completed short sales are HAFAs. Anyone have that number?
I can't see a reason for it to go on. The bugs have never been worked out of it, and it gives a lot of false hope and expectations. I have had two work out, one was excruciating and the other hasn't closed yet but has been perfect (I hope it continues...) One seems to keep looping...we keep getting rotten appraisals, and the poor seller is going round in circles.
HAFA is a joke with some lenders. First of all, HAFA takes twice as long to complete - I sent B of A all the sellers paperwork, the listing, AND an offer at market value back on Dec. 2. they are using Amorecoveries as their 3rd party negotiator. What a mess. They would not let me use Equator, and it took me 2 weeks to get them to acknowledge the 3rd party authorization. We finally got their HAFA approval with the asking price, 2.5 months into things, and we were allowed to upload an offer that was sitting in the file since December. The 2nd lienholder is demanding $2400 more than the 6K allowed by HAFA and there is no one to pay that. HAFA also does not allow for payment of delinquent HOA dues which total nearly 2,000. B of A says they might pay more if we moved it out of HAFA but then the seller, who is destitute, will not get the 3,000 moving assistance. The buyer is paying top dollar for a fixer, and doesn't want to pay $5,000 more for all this stuff. We are between a rock and a hard place and I don't know what to do except keep asking the banks to negotiate. I have also asked the HOA company to reduce the $1900 in delinquent dues, of which $1300 is penalties, but I have to wait till 3/28 for the HOA board to consider.....the government should form a panel of Realtors to help them structure the short sale program and all lenders should be ordered to participate. Now, when I hear HAFA, I want to run the other way, and that's how most of us feel in my area.
I found HAFA to be a joke. While I have had some success with HAFA, I have found traditional short sale to move along faster and without as many quirks. I just closed short sale with AHMSI, (NOT a SSSN referral)had the sellers write letter up front they choose to do traditional short sale and we got an approval within about 5 weeks and closed escrow this past week. AHMSI has been known to be hard to deal with etc but mine went fairly smooth.