Special offer

Are HAFA Transactions Worth the Time?

By
Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

HAFA short salesFor some folks, it may be time to celebrate as HAFA is finally accomplishing something in the short sale world. Finally is definitely the operative word here. HAFA was written into the March 2009 stimulus package, but didn’t come to fruition until April of 2010. At the end of 2010, HAFA was still not making the cut—closing something less than 700 transactions in the first several months. Then, the guidelines were revised a bit and HAFA had its first birthday.

The most recent HAFA news (according to the Treasury’s latest report which covers program activity through June of this year) is that a total of 10,438 short sales and 316 deed-in-lieu (DILs) have concluded through HAFA. Servicers started 3,631 new HAFA transactions during the month of June, which means an agreement has been offered to the homeowner for terms of a potential short sale or DIL.

While these numbers to not even approach the number of families in the pre-foreclosure stage, the Treasury’s latest report shows the program is beginning to show some measured success—up 55 percent compared to the 1,428 HAFA transactions that were completed in May.

One thing that originally made folks hot for HAFA was the anti-deficiency protection. However, now that California has Senate Bill 458, which allows for complete anti-deficiency protection, it’s possible that some Californians may not see the grand benefit of HAFA program. If a seller has more than one lien holder (or if s/he wants the $3000 HAFA incentive), then Californians may still see some benefits to the HAFA program. However, will buyers, sellers and their agents have the patience to wait while the bank processes the paperwork?

That’s the $64,000 question.

 

Comments (9)

Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

I don't know what the answer is.  It's not preventing the DILs and short sales.  I"m sure that many are being avoided, but it's definitely not stopping them.

Aug 24, 2011 05:15 PM
JOSH EVANS *JoshEvansHomes 516-655-5000
Village Properties of Mineola, LLC - Mineola, NY
That's a lot of transactions in a really tough market bin years but one day the market will get better and turn up for the better and more homes will sell and the market will get better and every one will be haoppy
Aug 24, 2011 05:28 PM
Lynn B. Friedman CRS Atlanta, GA 404-617-6375
Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear Melissa,

Of course - there are those of us who do not live in CA and must depend on HAFA's improvements!

Have a happy day-
Lynn

Aug 24, 2011 05:42 PM
John Michailidis
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

The HAFA program is a travesty. Less than $10 million spent to help homeowners in a year and a half, yet TRILLIONS have gone to bail out the criminal banking syndicates.

Aug 24, 2011 05:44 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

As far as my experience has been for me and my sellers, HAFA is an intricate paperwork maze, and communication NOT, nightmare.

Aug 24, 2011 06:21 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Melissa, I' d love to see the average number of days to close professed by the government so we have a better idea...i keep hearing from most of the closers that it still doesn't work well...HAFA needs help...has your company been doing any tracking of time here?

Aug 24, 2011 11:30 PM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Melissa, I submitted a Wells Fargo Short through the Equator system a couple of days ago, then got an email that I was to "FAX" the info directly as the loan was now being considered in the HAFA...program. Is there a training video that can give me an update.

Aug 25, 2011 01:16 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

The only thing a CA seller gets out of HAFA right now is the $3,000 incentive. Other than that, there is no reason to do a HAFA. In fact, if the seller's lender participates in Keep Your Home CA, those sellers get $5,000, so they may as well ditch HAFA and run over to KYHC.

I doubt I will be handling very many HAFAs in the future, but I certainly won't be handling any more Bank of America preapproved HAFAs. Those are a joke. I could close those faster as a HAFA if they weren't preapproved. Especially if they go to AMS. AMS just drops the ball, and it doesn't care.

Aug 25, 2011 02:31 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

For a home seller who really is in trouble, it certainly can help. But, there are a lot of hoops to jump through and as the numbers show very few qualify.





Aug 27, 2011 06:02 AM