As I prepared for a training presentation at our South West regional meeting, I decided to read up on the proposed HAFA program and thought I would be excited to learn how it would speed up the short sale process.
Actually, I was very disappointed by most of what I read since participation by lenders or servicers seems to be mostly optional and even those who participate can pick and choose how they participate.
However, the part of HAFA that concerned me the most has to do with a clause that in my humble opinion puts any real estate professional that takes a short listing under this program at a certain risk of legal liability because on page A-6 the Supplemental Directive 09-09, section 12b states the following as a cause for termination of the short sale approval: "You or your broker fails to act in good faith in marketing and /or closing on the sale of the property, or otherwise fails to abide by the terms of this Agreement."
Who will determine if a good faith effort was made in marketing the property and what will be the criteria?
What will happen if a seller finds out that his/her short sale approval was terminated and the property is goint to be foreclosed?
Will this result in litigation against brokers for failing to market the property in good faith?
It sure would be nice to see that section removed or at least clarified.