Home Buying in 02184>Question Details

Sarah, Other/Just Looking in 02062

Are HAFA short sales just as bad as 'regular short sales in terms of timeline for the buyer?

Asked by Sarah, 02062 Fri Apr 8, 2011

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Actually the HAFA Short Sale has to follow guidelines as far as the length of time it takes to complete a short sale, so this is better in terms of a short sale, because they must provide the seller and the buyer with timeframes.

A HAFA Short Sale is a Home Affordable Foreclosure Altenative, which means the current owner has an FHA mortgage.

I have attached a link to the document that gives you specifics about the program.

Take care,

Joseph Cawley
Cawley Realty Group
1 vote Thank Flag Link Fri Apr 8, 2011
I wanted to respond to the individual who mentioned that the HAFA program was FHA only. That is not true. The HAFA program was originally created by the Treasury department in 2009 (launching in April 2010) and then Fannie Mae and Freddie Mac created their own (launching in June 2010). FHA has it's own program but it is separate from the basic MHA HAFA short sale and deed-in-lieu programs. Realtors all need to go to http://www.HMPadmin.com which is the servicer and professional's website and review the Making Home Affordable Handbook to have a better understanding of the programs. Consumers must go to http://www.makinghomeaffordable.com to understand it all better.
I am a trainer in the HAFA program and speak about it on average 4 to 5 times a month with hundreds of students in the room. I have found that although there was a slow start with only one or two agents in my classes who have had a successful HAFA short sale to now in the area of 7-10% of the students commenting that they have been successful with HAFA. It's all about education and understanding how it all works.
0 votes Thank Flag Link Fri Apr 8, 2011
Guess I'm one of those who aren't fans of HAFA

My short sale sellers went through HAFA....rather than expedite the process, we actually ran into more brick walls. Finally, because our buyers kept walking away because they got tired of waiting and my clients were aftraid to be foreclosed, they opted out of HAFA.

The bad thing is, all the paperwork we submitted needed to be resubmitted to the next group. The folks handling HAFA are in a totally dfferent company/division/department from the folks handling the usual short sales. So we ended up doubling the time and doubling the effort to get the short sales completed.

Not a HAFA fan....
0 votes Thank Flag Link Fri Apr 8, 2011
The Home Affordable Program does have specific guidelines for timelines on a short sale. To be honest with you the ones I have been involved in have not fallen under the timelines spelled out. They have been a little quicker and easier though.
0 votes Thank Flag Link Fri Apr 8, 2011
The HAFA program was created with specific timelines and structure. Therefore, the goal of HAFA is that the short sale timeline is shorter. This was one of the program when it was written with the goal of keeping the deals together and the buyer involved. I've had agents tell me they were successful in getting a HAFA short sale closed in 60 days.
0 votes Thank Flag Link Fri Apr 8, 2011
Hi Sarah,
That depends on the lender, the negotiator, the seller and the seller's agent. Ideally hafa short sales should take less time but keep in mind that they are still short sales and can be time consuming. I have recently received an approval to sell within 21 days from Bank of America and have another on it's 7th month.
If you are appropriately prepared and your documentation is submitted in a timely manner it will shorten the process.
Best of luck
Web Reference: http://www.route495.com
0 votes Thank Flag Link Fri Apr 8, 2011
They certainly can be as bad as some short sales. With short sales you just nebver ever really know how long they will take for sure.
0 votes Thank Flag Link Fri Apr 8, 2011
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