Short Sale: Father in law's medical expenses are my responsibility and now can't afford my 2nd home, would I qualify for HAFA?

Asked by Marco Nortel, Santa Ana, CA Tue Aug 16, 2011

2 Months ago I purchased a second home that so that my father in law could live with us since he has cancer and cannot care for himself. He is at the point that he needs around the clock supervision and that cost me an extra $2800 monthly. With this added expense I can't afford to pay the mortgage on the 1st home even if I rented it out. Would I qualify for the HAFA program since my 1st home is just vacant?

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Louri Groves 767-8158’s answer
Louri Groves…, Agent, Fountain Valley, CA
Fri Aug 26, 2011
Hi Marco,

First of all, I am sorry that your family is going through cancer. It' very admirable of you to care for your FIL.

In response to your question, HAFA is for primary residences purchased on or before January 2009. I hope you already have given Karen a call to discuss privately. I can see from your posts that you are considering all options available. There are a number of questions that need to be asked in order to properly brainstorm strategy and this may not be the appropriate forum as it is so public and your situation is so private.

Also inspire.com offers so much relevant information from people battling cancer and their care takers. You might be able to find information on additional financial assistance-- certainly emotional support and treatment options from others on the wonderful forum.

Please feel free to contact me if I could be of assistance. My best to you and your family.

Louri Groves
Prudential California Realty
714.767.8158
0 votes
Emily Knell, Agent, Huntington Beach, CA
Thu Aug 25, 2011
If you have increased expenses now, with your father in law & are asking about whether you would qualify for a HAFA short sale, why are you asking about buying another home for $450K brand new?

If you do a HAFA short sale, you will not be able to buy another new home.

If you're money is tight with the medical expenses, you will not qualify for another home right now because your debt ratios are going to be too high.

How are you going to close on this short sale that you've been in process with for 90 days? Do you have a co-borrower? If so, that's great, but if you start attempting a short sale on another one of your existing residences NOW you won't be able to close on this other purchase.

Going over & talking to the seller of this short sale is not going to do you any good. The seller is not the problem, it's a cross between or either of these two things that is causing your delay 1. The listing agent being inexperienced with short sales or 2. the sellers' lien holder is taking their sweet time with approving the short sale, which is not uncommon. Fast & Short Sale are 2 words that are not synonymous (with very few exceptions)

You don't need to order an appraisal yet until you have short sale approval. However, there's no reason why the seller can't prepare & give to you the required California disclosures, at the very least a Transfer Disclosure Stmt or Seller Property Questionnaire, just ask the listing agent to get the seller to do that now.

Please let me know if I can help you any further, I have LOT of experience with short sales.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
Short Sale Expert
0 votes
Karen Parsons…, Agent, Laguna Beach, CA
Thu Aug 18, 2011
Hi Marco,

You are doing a really nice thing and I'm sorry for your father-in-law and family. I'm reading ths and wondering if you mean the loan modification? or short sale? If you are interested in keeping the home you might be able to do something with the loans and do that.

I would be happy to talk with you more, privately....if that would be of help, please send me a private email and we can speak more about your situation.

I hope it all works out....with whatever you decide to do, and I'm so sorry for your family. Let me know if I can help at all.

Karen
0 votes
Margaret Has…, Agent, Tampa, FL
Tue Aug 16, 2011
You can check this website http://www.freddiemac.com/singlefamily/service/hafa.html, but as far as I know HAFA is only for your primary residence. You may be able to do a short sale of the property. Contact a Realtor in your area for more information.
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