Based upon my professional experience, this situation appears to be one where the seller really does not want to give up his/her home and is trying to 'play' every option possible to 'buy time' to stay in the property. Their next step after 'playing' HAFA, which they will likely reject because it requires them to agree to a deed in lieu of foreclosure, is to file for bankruptcy protection.
Your options appear to be:
1. Stay in the deal while recognizing it may takes months to close, if ever.
2. Seek out a 'standard sale' vacant property that can accommodate a 30-day closing.
3. Put your household goods in storage when you have to move in June, take an interim rental, and keep looking for your special place to call home.
I'm sorry that you are in this difficult situation. Unfortunately, it is not an uncommon occurrence.
Keller Williams Realty
Los Angeles, California
The request for HOA status is required in any transaction, short sale or otherwise, therefore it should have been expected and addressed with the HOA by the time you received a short sale approval from the lender. When a negotiator submits an offer to the bank for consideration all existing debts are addressed on the HUD settlement statement. This, of course, would include any late fees, assessments transfer fees or past dues to the HOA. If they're current, it's no problem to get the letter. If they are not, the HOA can be difficult while they join the negotiation to get paid.
A request for the seller to contribute towards closing is not uncommon and typically results from a review of financial statements and bank statements. If a seller has money in their accounts at the end of each month, the bank will likely ask them to contribute at closing. However, a clever and experienced negotiator can find any additional funds needed from various sources in the deal. One of those sources, as someone suggested below, is for the buyer to contribute that money. In your case, if the deal makes sense, and you wish to close sooner rather than later, you may consider offering to pay the additional $1,000.
And now HAFA. When a file is placed under HAFA review, it is removed from the banks short sale system. Particularly in the case of Bank America. This means that any issued approval letters become null and void. Bank negotiators will no longer be able to respond or work on the file until the file completes a full HAFA review.
This process is supposed to take 30 days or less to produce a response from the third party vendor Bank America has hired. My personal experience on the past two HAFA files I've submitted (one now 45 days in and the other 60 days in) is that it takes longer to get a response. Note this is just to get a response to the HAFA short sale. If you are denied for HAFA, you may begin again with the lender to complete a regular short sale.
As a certified HAFA specialist with 200+ short sale files under my belt in the past two years, it pains me to say that I don't have much faith in the HAFA programs, nor do I believe the banks prefer to work through the program to provide approvals. It's not uncommon for someone losing their largest asset to work through the full gamut of emotions, including becoming offended by the banks actions. It's important for everyone involved to keep their eyes on the prize.
In this case the seller's prize is a completed short sale that avoids foreclosure. By taking steps that may hinder approval and lose a good buyer such as yourself, they risk far more than simply being offended.
Perhaps now is a good time for someone in your transaction to remind everyone else that cooler heads will prevail. For yourself, don't get lost in a deal that does not have a chance of closing. If you begin to see signs that the deal may not meet your needs address them immediately. If you don't find yourself on the same page as the seller, inform them that if you cannot meet your objectives you will need to move on. Often times that is enough to keep everyone on track.
Best of luck and keep us posted.
Allan S. Glass
ASG Real Estate Inc. Â®
149 S. Barrington Ave, Suite #660
Los Angeles . CA 90049
Direct: 213.973.8637 (213.97.FUNDS)
CA License: 01154002
Visit Allanâ€™s Blog: http://allanglass.featuredblog.com
If you really need to be in by early June, you should start looking at standard sales and REOs. Short sales usually take a long time, and combined with escrow, you won't make it.
You might be able to pay the $1000 for the buyer, and bring the HOA current to satisfy BofA to continue on this short sale, but since the sellers think they are going to get $3000, don't count on it going forward.
Good luck !!
Nextage Capital Advisors
1521 Wilshire Blvd
Los Angeles, CA 90017
HAFA short sales follow strict mandated timelines, so your fear that it will take "months" is unfounded. I had two short sale files "scrubbed" for HAFA qualification last month. B of A took 10 days, and GMAC took 8 days. Proof of HOA non-delinquence is as simple as a letter from the HOA president or management company, and should be no more than a 24 hour turnaround. The seller should not be offended by that, it's standard operating procedure in a short sale. If you really want the property, you could make an offer to Bof A to pay them the $1000 on the seller's behalf. But a strong negotiator (the listing agent) should be able to get that waived.
I have more concern about the dedication of the seller to the short sale process, and about the overall expertise of the listing agent. Checking on availability of HAFA for a seller should be the FIRST thing a listing agent does, before the property even goes on the market. In addition, will the seller cooperate in the short sale if the property and seller do not qualify for HAFA? Can the listing agent tell you whether the property and seller meet HAFA criteria?
If you are getting a lot of no's to the above questions, and your agent's assessment of the seller's motivation is low, it may be time to move on.
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
I want you to know that I appreciate any referrals from friends and associates who may be in the market to buy or sell real estate. You can count on me giving them the same high-quality service I provide to all of my clients.
If you really like this house, I strongly suggest you invest in your OWN lender ordered appraisal & give it to the listing agent to forward to BofA & the HAFA assigned "government vendor". Then YOU know what it's worth & they won't be able to mess with you on value.
Realtor Since 1996
Short Sale Expert
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
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