Short Sale

Asked by Tiffany Hua, Fountain Valley, CA Wed Mar 30, 2011

I got this from another Agent. Is there a Standard Short Sale and Government Short Sale?
All I know there is Traditional Short Sale; HAFA; & Cooperative
Thanks in advance for your input

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Emily Knell, Agent, Huntington Beach, CA
Wed Mar 30, 2011
All of the Government SAVIOR programs are TOTAL F A I L U R E S!!!!!!!!

Surprise Surprise!

HAFA is being canceled. If you ever had tried to start a short sale with HAFA & let it get as far as for BofA, for example to tell you what to list the property for, maybe you noticed that it was totally out of whack! Some super high list price that YOU know would NEVER procure a buyer!

Do NOT let the banks tell you what to list properties for. They are not Realtors! Go with the Traditional Short Sale route. When the bank sends out their appraiser or BPO, BE THERE, do not let them into the house alone! Do your homework, have your comps in a neat package. Know the comps (literally) inside & out & present your case for fair market value.

Has anyone else seen BofA do anything at all FAST or QUICK when it comes to short sales? I haven't. Fast or quick in my book would be when we're all getting short sale approvals in under 3 weeks.

If they still come back with a price that's too high, list it for that price, when the price doesn't procure a buyer, drop the price, you still have a 2nd shot at appraised value when the buyer is in escrow.
562-430-3053 cell
Realtor Since 1996
Short Sale Expert
1 vote
Eli Givoni-S…, , Boca Raton, FL
Wed Mar 30, 2011
Hi Tiffany,

There is no "Standard Short Sale". Every file is different. When they refer to a government short sale, they may be referring to the investor on the file, whether it is Fannie Mae or Freddie Mac. There are some guidelines on those files. Although, even with those guidelines, every file is different. You really would be best off to hire a professional to negotiate for you to get the file closed.

We are a professional short sale service and would be happy to explain the process to you. We have been closing short sales since 2007. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
1 vote
, ,
Fri Nov 11, 2011
Just a comment on what Emily said. Yes banks want short sales to sell for top dollar; then they take months to approve the short sale. Well, what buyer is going pay top dollar for a house, when they have to wait 6 months to find out if the bank is even going to approve it?

Emily is right, I would take it one step further, they should require by law a time limit for banks to either approve or decline short sales. The answer could be no, that is fine. But this is just one of thethe actions by the banks are destroying our housing markets.

Instead the banks undermine the colateral of the mortgages and then want to be bailed out with tax dollars.
0 votes
Shadi Kian, Agent, Lake Forest, CA
Wed Mar 30, 2011
Dear Tiffany; I am glad that you recieved many good answers. I am currently doing a shortsale with B of A. I have experienced HAFA/ Government and Standard/traditional with B of A too. Cooperative is a new program with B of A .They accept your short sale request before you have the offer. But trust me, I tried to send my short sale package for co-operative and Equator told me they have not heard anything like that. I had to call several department until I could send in my Cooperative Short sale package. Regardless, answering your question, the Standard is the same as Traditional and Government is HAFA. That is that. HAFA is a joke, it takes over six months to finalize. The longest short sale process I have had every time, was with B of A. The shortest process and easiest was with PNC mortgage start and closed lest than 35 days. I hope these information helped.
Shadi Kian/Broker
DeltaMax Mortgage/Realty
0 votes
John Arendsen, Agent, Leucadia, CA
Wed Mar 30, 2011
To sum it up, and I'm reciting from memory, Emily is spot on. Emperor Obama said his super HANF and HAFA programs would result in 4,000,000 loan mods. Ha, ha, ha. So far it has turned into a fantastically successful total of a little over 400,000. My math tells me that's about 10% of what he promised. Guess what? Over half of those went back into default within 6 months. What a success! Please excuse my cynicism. But I'm rather jaded with government intervention. Kinda reminds me of the US Post Office, Amtrak or Obamacare.

If I were you and you had a distressed property? I'd be quickly looking for private sector solutions. Get yourself an experienced REO or short sale professional agent/broker ASAP and save yourself a lot of grief.
0 votes
Justin Ruzic…, Agent, Greenville, SC
Wed Mar 30, 2011

there are many valuable answers below. I second Emily in the Government failed us yet again...HAFA, real similar to HAHA, when i text, they hold about the same weight when it comes to short sales, ps I have closed dozens of HAFA short sales but they took 6 months to get the approved price, I have closed over 100 short sales none HAFA....
Here is a blog i wrote about short sales and foreclosures...…
best of luck to you.
0 votes
Erica Svenne…, , Orange County, CA
Wed Mar 30, 2011
Traditional, HAFA and Cooperative are the 3 B of A programs.Standard and Traditional would be the same thing. Government and HAFA would be same program. Cooperative is B of A's newest program where you submit the package & listing prior to getting an offer and they come back with the price. it is supposed to be alot faster and hassle free, like Wachovias Fast Track program. With HAFA the bank also comes back with a price to list at. I hope that helps you can also check out our website for other answers related to the short sale process.
0 votes
Laura Coffey, Agent, Santa Clarita, CA
Wed Mar 30, 2011
HAFA is offered to borrowers on their primary resisdence.
The first lien had to of been originated on or before Jan. 1, 2009
The mortgage is delinquent or default is imminent
First lien balance is equal to or less than $729,750 (one unit property)
Borrower can prove genuine hardship
If you sign an agreement to take care of the property while the HAFA short sale is taking place you could qualify for $3000 at the close of escrow.
If you do not qualify for a HAFA short sale a traditional one would have to take place if you qualify for that one.
0 votes
Sharon Butler, , Orange County, CA
Wed Mar 30, 2011
Hi Tiffany, I actually work with agents, meet with their clients on short sales and process them. There is the Standard Short Sale which is your Traditional Short Sale. The Government Short Sale has to be a loan where the investor is Fannie mae or Freddie Mac which is the HAFA program, IF the seller has tried for a modification and was declined, then it can be rolled into the HAFA program and the seller is allowed cash for keys.

0 votes
Ryan Doll, Agent, Huntington Beach, CA
Wed Mar 30, 2011
I know BofA recently came out with there corporate short sale. From what I read I would stay away from it...
0 votes
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