HAFA training and Certification for agents? Is this a Scam?
This is a great blog on short sales. I commented on Deb's post and this is what I said. "
This is a good post. I started doing short sales before they were so common and long before there was any certification. I got my son in law, started doing them with me and we have closed over 100 short sales from the seller side and more if you count buyer side sales. My son in law is certified with Short Sale Genius. I have not received any certification and I remain skeptical of certification. There are all kinds of courses that are short and provide some letters to put after your name. However it has been our experience that many "certified" agents have closed very few short sales and often have no clue. When we have a buyer client interested in another agents short sale the first thing we do is look in the MLS and see how many they have listed, and more important, how many they have closed.
You will see that sometimes those aggressively marketing themselves as short sale experts have few closings and worse sometimes they have listed a lot of them that have expired.
Failing a short sale can be disastrous for a potential seller and may result in them going into foreclosure. One other thing to consider is some certification courses are designed by BANKS!
Too often we see agents roll over when the hard negotiation comes. It used to be that banks didn't counter offer. They accepted or rejected and that was that. Now they often counter offer and their processors sometimes are getting incentives.
Occasionally we see a negotiator who is an outside negotiator and makes a percentage of the Real Estate Commission. So it messes with your commission and raises the sale price. That is not always good for either buyers or sellers. Be wary of short sale experts and "certification" and take the time to talk to the listing agent and look at their MLS history to determine if they know what they are doing or not". See Deb Espinoza's original blog for comments left to her and make some here please. Also consider that different states have different laws concerning things like judgments on balance of loans after the fact.
For Idaho short sales even if they approve the sale they may go after the seller later if you don't get that in the approval.
Okay- so now we Realtors have SFR Certification (Short Sale and Foreclosure Resource), massive amounts of "Gurus" toting their specialty programs to be 'certified' in distress property sales, and now CAR is promoting a HAFA training and Certification from some company called "Asset Plan USA" for $299 !!! What the heck?
So I decided to do some research to see just how difficult this HAFA program could be to learn and implement. The HOPE for homeowners web site had this information:
Home Affordable Foreclosure Alternatives Program (HAFA)
57. What other alternatives to foreclosure exist within the Making Home Affordable Program?
The Making Home Affordable Program will include additional foreclosure avoidance options through the Home Affordable Foreclosure Alternatives (HAFA) Program. While the HAFA Program becomes effective April 2010, servicers may participate immediately, or as soon as is practical. The primary options available through HAFA include Short Sale and Deed-in-Lieu of Foreclosure.58. How does the HAFA Short Sale work?
In a Short Sale, the homeowner sells the property for less than the full amount due on the mortgage. When a homeowner qualifies for the HAFA Short Sale, the servicer approves the Short Sale terms prior to listing the home and then accepts the payoff in full satisfaction of the mortgage.59. How does the HAFA Deed-in-Lieu of Foreclosure work?
With the Deed-in-Lieu of Foreclosure, the homeowner voluntarily transfers ownership of the property to the servicer in full satisfaction of the total amount due. The servicer may require that the homeowner list and market the property before they agree to a deed-in-lieu arrangement. In order for the Deed-in-Lieu of Foreclosure to work, the homeowner must provide a marketable title, free and clear of other mortgages, liens, or other encumbrances.60. How can I be considered for HAFA?
A participating servicer must consider a homeowner for HAFA if the borrower requests a short sale or deed-in-lieu under HAFA, and a servicer will also consider a homeowner for HAFA within 30 days of the date the homeowner:
- does not qualify for HAMP; or
- does not successfully complete a HAMP trial period; or
- misses at least two consecutive payments on a HAMP modification.
However, before evaluating a homeowner for HAFA, a participating servicer must first consider that homeowner for other loan modification or retention programs that they offer. In addition, pursuant to the servicer's policies, every eligible homeowner must be considered for HAFA by a participating servicer before the homeowner’s loan is referred to foreclosure and before the servicer may allow a pending foreclosure sale to continue.
Beware of Foreclosure Rescue Scams - Help Is Free!
61. What are some of the warning signs of scams or fraud?
- There should never be a fee for assistance with or information about the Making Home Affordable Program.
- Beware of any person or organization that asks you to pay an upfront fee in exchange for a counseling service or modification of a delinquent loan. Do not pay – walk away!
- Beware of anyone who says they can "save" your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
- Never make your mortgage payments to anyone other than your mortgage company without their approval.
- The Obama Administration has launched a coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times.
62. What should I do if I’ve been scammed?
- First, get the help you need to avoid foreclosure. Contact your servicer immediately.
- Contact a HUD-approved housing counselor through the Homeowner’s HOPETM Hotline at 888-995-HOPE (4673).
- To learn about foreclosure rescue scams, go to www.MakingHomeAffordable.gov/beware. To file a complaint or to get free information on fraud and other consumer issues, contact the Federal Trade Commission at www.ftc.gov/consumerprotection or 877-FTC-HELP (4357).
So, there's no fee for the homeowner to get HAFA info, but the agent should pay for it?? I don't understand. Who is controlling the situation in these HAFA short sales? Govt. employees on a hot line or experienced, knowledgable Realtors??
In deciphering this information above I have come to the conclusion that in most cases this HAFA short sale program won't be used on most SoCal homes. Most properties here have 2nd mortgages and most seconds either want more than the $3K token payoff; and plan to go after deficiency when the unsuspecting borrower gets back on their feet, or they will sell to a bull dog collection agency for a few dollars more so they can go after the borrower at a later date. So I am thinking in 3-5 years we have a pretty good amount of poor unsuspecting families getting their wages garnished to pay for houses long gone and overpaid for.. As well as the fact that you cannot do a deed-in-lieu if you have 2nd or more lien holders and most home buyers have those 2nd mortgages.
I am thinking we have just another inadequate government program that the lenders will never quite figure out how to implement, and will further mess up the progress we've been making with getting some systems in place for some lenders; in a effort to make the public think that the government is actively working to find solutions for the homeowner's best interests. (NOT) AND to top it off some company I've never heard of (probably owned by an ex- Goldman Sachs exec. haha, no really, I would not in the least be surprised :-) gets $299 for each unsuspecting real estate agent that signs up for their program to become HAFA certified.. are we SUCKERS!??? I even went on the site and listened to the video by Ray something or another to describe the program... are you kidding me??? HOPE, HAMP, HAFA.. maybe we need a program called HEMP because I think someone's smoking it..
Enough about my thougts, what do you think? Have you heard about our Realtor "need" to be certified for this?? I'd love your input!
Deb Espinoza GRI, REALTOR, ePro, SFR, CNE
Stage Presence Homes
DebSDRealEstatePro@gmail.com
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