Short sale changes in the news; HARP extended to 12/31/15 and B of A revises their requirements

Real Estate Agent with Better Homes & Gardens Wine Country Group DRE # 00770113

BofA short salesThere has been a lot of events happening in the world of short sales just recently. The Federal Housing Finance Agency (FHFA) recently directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP) by two years to Dec. 31, 2015. The program was set to expire Dec. 31, 2013. HARP is federal government program uniquely designed to allow borrowers who are underwater to refinance their mortgage. 

And from an article in this week's issue of Newsline, a weekly email newsletter by the CALIFORNIA ASSOCIATION OF REALTORS® :

Short Sale Soundoff: Bank of America revises short sale requirements

Bank of America recently issued a new Short Sale Agent Update that revises certain short sale requirements for short sales involving non-government-sponsored enterprise loans in which the homeowner is eligible for HAFA.

Key enhancements include:

  • The Short Sale Agreement is being converted to a Short Sale Notice which will no longer require the borrower to sign and return the agreement.
  • The Request for Approval of Short Sale and Alternative Request for Approval of Short Sale are being eliminated. The Acknowledgement of Request for Short Sale is being introduced in place of the Request for Approval of Short Sale, but will no longer require borrower’s signature and return.
  • The time frame for servicers to make a decision on a borrower’s request for HAFA has generally been shortened to 30 calendar days of receiving all documents and external approvals required.
  • Treasury will now require both the seller and purchaser in a HAFA short sale transaction to sign a new HAFA Affidavit document prior to closing. This certifies that the sale represents an arms-length transaction and that no money is being given or received that is not reflected on the HUD-1 Settlement Statement.

The prohibition against resale of a property for 90 calendar days following a HAFA short sale closing is being updated to prohibit any resale within 30 calendar days and prohibit a resale for more than 120 percent of the HAFA short sale price between 31 and 90 calendar days of the HAFA short sale closing.

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Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Whoever heads up the short sale department for BOA should have been fired along with the person that hired him or her. I am so glad I sold my stock when they bought countrywide so as to get that CEO out of going to prison. A good lawyer could make some easy money with a class action suit as incompetent as these folks have been in handling the stock holders money.

Apr 18, 2013 09:20 PM #1
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for sharing the information. I will bookmark this and share with others.

Apr 18, 2013 09:41 PM #2
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire


Thank you all for stopping by and leaving additional important info. And yes Charles, I agree with you. If someone could gather all the dumb things BofA has done throughout this last 4 years, it would be one heck of a horror story. cheers cvc

Apr 19, 2013 12:05 AM #3
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Curtis, Thanks for the update on all of the BOA short Sale changes. Cheers my friend.. 

Apr 19, 2013 08:50 AM #4
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire


your welcome, cheers cvc

Apr 19, 2013 12:03 PM #5
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