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inna ivchenko, Real Estate Pro in Calabasas, CA

Why Bank of America Is Offering the Cooperative Short Sale? ( coop vs HAFA/etc)

Asked by inna ivchenko, Calabasas, CA Mon Apr 2, 2012

Pros and Cons in your experience working wish short sales?
We all know coop is easier and faster~ we like it, but what was your experience with both?
I hear sometimes agents suggest to opt out of HAFA or other gov programs while taking listing( before being offered coop), why?

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Irina Karan’s answer
I find that HAFA works better if you send the short sale package with the offer.
Without the offer, the bpo value often comes higher (as offers are indicative of the market value, to some extend, too). Then, you have to match that higher bpo (or be in the "bulls eye" area) - which is not always that simple. Buyers don't want to overpay...

Regular short sale BOA's style has been streamlined, and yes, it should work pretty well now.

No particular "value" on HAFA anymore (it used to be more time-efficient).

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
1 vote Thank Flag Link Fri May 11, 2012
I have completed HAFA's that were great! In one case my sellers were given 6K relocation and were very happy with the outcome once we switched over. We also were able to get a 2nd to cooperate that wouldn't under the standard short sale (wanted 30K and did not budge, then accepted 3K through HAFA- waived deficiencies). They work great when you have a property you know you can get good/multiple offers on.

Stephanie Hart
Forecast Realty
CA DRE 01338444
0 votes Thank Flag Link Wed May 16, 2012
It's vital to stay on top of the latest info and trainings in the short sale market. I'm including a link to the Bank of America agent resources in the link box. They offer replays of their training videos, and any agent doing short sales should be signed up to get their updates.

This is a very good question. Currently, there is a path to resolution with defaults. The banks have agreements with GSE's (Fannie, Freddie, etc.) , and sometimes in response to lawsuit settlements that have created their rules and procedures for helping their customers avoid foreclosure. Sometimes these require a borrower to exhaust one remedy before going to the next. For example, a borrower may be required to apply for HAFA, and be turned down before they can be offered a cooperative short sale. Your client can "opt out", however, they require the client to tell them that personally, and they have to have a call with the client so they can be certain that it is the borrower's decision, not the agents.

It's always important to let the borrower (seller) make their own decisions. We provide information and guidance, but the seller, ultimately is taking the risk of foreclosure if the path to short sale doesn't work out, so they need to be fully informed, and active in the decision making process. I don't want to say, "just opt out of HAFA, it's easier…it's better… etc." . I want to say, "my experience with HAFA has been xyz…here's what you gain, here's what you risk" and let the client make their own choices. The truth is, I have had HAFA sales go so smoothly you wouldn't believe it - and the opposite. Same with cooperative sales. Every short sale is different - a different set of buyers, sellers, negotiators, investors, circumstances…. no two sales will even be similar. Even within the same bank…EVEN with the same negotiator. If there is a good chance that the seller can receive some moving money with the short sale, such as with HAFA, I feel that it's worth some extra effort to help them achieve that, unless there are compelling reasons that HAFA isn't likely to work in that situation.
0 votes Thank Flag Link Wed Apr 25, 2012
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