HAFA – Changes, Improvements, and Even Some Success
September 23, 2011 / /
http://shortsalepowerhour.com
Fred and the Kevin Larry Kauffman discuss HAFA and its evolution over time.
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About the Authors
Kevin Kauffman & Fred Weaver
Kevin and Fred the founders of Group 46:10. Over the last 10 years Kevin and Fred, and their team have closed tens of millions in real estate all over the country and have created some of the best training for agents in the market. Kevin and Fred are also highly sought after teachers whose work has helped agents all over the country build their own next level real estate business.
I have never had a short sale successful through the HAFA program. There is one file I am working on now with Chase that was submitted to them in late July, denied the HAFA short sale, and is just now being assigned to a negotiator. If not completed within the next three weeks the buyers have said they will walk. While there have been other problems that have caused delays, I certainly wish they would have never tried the HAFA set up.
Done about 8 this year. Required some work, but all in all were relatively smooth, save a few escalations. If the seller fits the chriteria, it’s a no brainer
Just as additional information…all were done via back door using an ARASS.
HAFA is still a joke for the most part. I have had it ruin more short sales than it has helped by far. Fred said it correctly, you will usually spend 45-60 days just to find out the bank claims that the seller does not qualify, then you have to start over with a traditional short sale which will take an additional 45-60 days, in that time frame you will most likely lose the buyer. As much as Bank of America has improved their processes for short sales and improved their timelines, their HAFA time frames stink. They are using 3rd party companies like UTLS and LRC to process for HAFA, they have absolutely horrible communication and it seems like no one from the servicer or investor is holding them accountable. We are advising sellers to opt out of HAFA the moment we get an offer in, we are getting a full release on almost all of our files now so HAFA is of little benefit other than the 3k incentive. From what I have experienced HAFA has about 3-5% chance of actually working and an 80-90% chance of sabotaging your short sale, so in my opinion its not worth taking that risk chasing after $3,000.
Good job in Austin guys!
Completed first HAFA in March. Chase first, GMAC second. Executed contract on November 3 and closed on March 10 – 127 days. No hitches with process. Working on another now.
Thanks for all the comments guys.. Its clear to me that more HAFA Short Sales are occurring but its still not an easy or efficient process.
Wells Fargo HAFA easy and quick (4 months from start to close), BofA 4 months and still no approval. What happened to the 45 day turn around time??? I think it definitely varies from servicer to servicer. BTW for all of you HSBC short sale rookies, be sure to request $7500, YES, $7500 in seller relocation assistance.
ONE AND DONE!!! Eric’s comments pretty much sums it up
BoA sucks with HAFA. All the good will they got generated over the last year is gone with their hafa deals. I have a “pre-approved” hafa and we are now three months later still no letter. I have four in HAFA right now. What I do though is if the client wants to do hafa they NEED to go through the hafa approval process before I will list the house that way I dont worry about the time later.
I even have one right now where it is a Chase first/Wells second and we are closing in two weeks under hafa. FIrst one I have had that did two separate banks.
Still hate it though because it requires a lot more paperwork and it is NOT shorter from what I have seen.
How do you really feel buddy?
Eric’s comment pretty much sums it up… to us, it still seems like HAFA is ruining for more deals than its helping.
One HAFA closed March this year, Chase first and second. Process pretty smooth once it was approved, uneventful other than typical hurry and wait turn around for the special third time is a charm super patient buyer.
BofA HAFA was approved fairly smoothly(6 weeks), but was killed when MI declined it. Now we are in BofA Co-op purgatory! weee!
Copy and paste in your browser:
http://www.realtor.org/wps/wcm/connect/aff82b0043f0ce46b2a0fb34cafa6d66/gov_aff_hafa_mortgage_guidelines_0910.pdf?MOD=AJPERES&CACHEID=aff82b0043f0ce46b2a0fb34cafa6d66
If guidlines are met, it does work. Sounds like a reasonable suggestion up above to obtain approval prior to listing.
For me, Wells Fargo and Chase have the best HAFA short sale processes. Relatively quick turn around time on approvals as well. On the other hand, my B of A HAFA short sales have been MISERABLE! They outsource these files to AMS and UTLS, both of which are extremely slow in getting anything done. One of my B of A HAFA short sales is with UTLS and the negotiator is now 30 days past due on a task they were supposed to complete in Equator. I’ve escalated, complained, called, kicked, screamed and nothing is getting done.