Dear Melissa:
We need help.
Rather than let our house go to foreclosure, we got a Realtor® and put the house on the market as a short sale. We advised our Realtor® that we were interested in applying for the $3000 relocation expenses. She indicated that she would apply for that. We neither filled out nor signed an application for this. After two months, there was an offer on the short sale and today, at closing, we asked about the relocation expenses and were told that the bank said we didn't qualify. We were never notified and this was the first we heard and our Realtor® couldn't tell us why we didn't qualify. We refused to sign any more paperwork until we got an answer. Is this possible and do you know why we wouldn't qualify?
--Short 3k in Santa Fe*
Dear Short 3k in Santa Fe:
Since we are not privy to the details of your transaction, it would be tough for us to know if the agent doing the negotiating made a boo boo, or whether you actually did not qualify--since not all loans qualify for the HAFA program and its relocation assistance.
What I can tell you is this: the HAFA program requires that the borrowers complete a number of forms early in the short sale negotiation process. And, the short sale approval letter and estimated settlement statement would show an allocation of 3k to the seller/borrower at closing. Generally, those processing the short sale know early on whether the seller will qualify for the HAFA program (or any of the available short sale incentive programs).
Not all banks participate in the HAFA program and not all loans qualify for the program (even at participating institutions). If you want to know why you did not qualify or whether you should have qualified, call your mortgage lender. The short sale negotiator at the lending institution may even have his/her phone number on the short sale approval letter.
Good luck!
--Melissa Zavala, Broadpoint Properties
*This is a real question received via email from a legitimate short sale seller. Names have been changed.
Comments(7)