how many times can you apply for a HAFA short sale approval when buyers bail out?

need your help...I have a HAFA approved short sale with an offer that was HAFA approved...the Wells Fargo hafa approval expires the end of May...the buyer with the approved HAFA offer is bailing out...we are now without a buyer, we will need another buyer/offer...

 

My Questions: does the HAFA ss approval end when current offer is cancelled or on the date the HAFA approval expires? if a new offer is accepted, will we need to re-initiate the HAFA short sale approval application process again? or can the new buyer come in under the current HAFA short sale approval as long as we close before the end of May...if needed, will wells fargo extend the HAFA expiration date? if the HAFA approval dies with the current deal or it will expire before the new offer is scheduled to close the transaction, can we apply again for HAFA approval with the new buyer/offer? how many times can we apply for HAFA approval?

 

your help will be greatly appreciated...

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Replies to This Discussion

Carmen,

You have time to recover and resubmit.
I do not believe there is a hard number of times you can re-submit.
I have had HAFA deals go through multiple buyers.This is normal.

HAFA approval does not die with the exiting buyer unless your up against a sale date and

the investor forecloses on the property.  

Don't worry about renewing HAFA, you have 120 days to sell the property and then you may request an extension, which aren't easily granted unless you have a viable offer on the nearby horizon.  If an offer is in and the lender has accepted it, don't worry about the closing date - it usually occurs after the 120 days.  Your bigger worry is to get an offer (number of various offers doesn't matter) in and accepted before the Short Sale Agreement (SSA) expires.  After it expires, the lender can exercise its option to do a DIL, leaving you high and dry without any commission.

Bottomline: Aggressively seek buyers/offers and get one accepted prior to the SSA's expiration date. I think the closing can occur up to 45 days after the contact is accepted (check your SSA).  Good luck!

It is the date the HAFA approval expires - the HAFA approval is different from the approval of the offer.  I think you can only apply once for the actual HAFA approval BUT I am not aware of any limit on offers.  The HAFA approval itself stands on its own, as does the approval to participate under the FHA guidelines.and the expiration date of that approval is the important date.  Can it be extended?  It depends on the investor.  I had 2 BA HAFA's, 2 different investors.  One of them actually gave us a 60 day extension on the HAFA approval (not the contract) because we lost our buyer - the other would not give us any at all.  When we hit the expiration date - they cancelled the file.  So, go ahead and get a new offer and submit it - you should be OK till the HAFA approval expiration date. Also there is a time frame in which they are supposed to approve the new offer as long as it meets the guidelines of the approval.  I think it is  10 days.   Call Wells and ask them what the particular investor's policy is as to the extension of the HAFA approval itself should you need that to happen.

 

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