Could these HAFA numbers really be true???

By
Real Estate Agent with KW Kauai

I saw an article on the net from last week reporting the HAFA numbers through the Treasury Department. Given the delays on my own HAFA-compliant short sales, the story is not that hard to believe. Here on Kauai, when a homeowner qualifies for HAFA in their primary residence, it seems only logical as their agent to assist them in pursuing this solution. But, it has not been easy.

According to article on Housing Wire, "Lenders completed 342 short sales and deeds-in-lieu of foreclosure through the Treasury's Home Affordable Foreclosure Alternatives program since it began through Sept. 30, according to a report from the Special Inspector General for the Troubled Asset Relief Program. But, according to some, the numbers don't add up" Are you kidding me, 342 HAFA sales in FIVE MONTHS.arrghh.

HAFA went into effect April 5 as another way for lenders to keep borrowers who meet the basic requirements for the Home Affordable Modification Program but could not successfully complete the three-month trial stage. So far, the Treasury has paid out $1.6 million in TARP funds to investors, borrowers and servicers in connection with the 342 short sales or DILs through HAFA, according to Treasury data given to SIGTARP.

The number is surprisingly low, considering how many trials and permanent modifications have been canceled from HAMP. Servicers have canceled 699,924 trial modifications as of September and another 29,190 permanent modifications.

Equator, a third-party technology provider that processes short sales for major banks such as Bank of America (BAC: 11.7799 +2.26%) on its Web-based platform, said the SIGTARP numbers for HAFA is far too low. According to Equator's data, lenders, real estate agents and homeowners have initiated 117,000 HAFA short sales on its system from April through Oct. 27. I personally have four Kauai short sales in the HAFA system and I have started asking the servicers if they have EVER seen a SSA (short sale approval) letter.

Please A/R readers, if you have seen or gotten one of these letters, tell me it is so. These numbers are really disturbing.

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Rainer
190,659
Dave Gubler
Mission Viejo, Foothill Ranch, Lake Forest, Ladera Ranch - Lake Forest, CA
Realtor | Orange County

I think the keyword is "completed".  It does, as you know, take quite a bit of time usually to get the HAFA approval with preapproved terms.  Although the official start date was April 5th, 2010 we all experienced the slow as molasses implementation that is the hallmark of government programs.  We have completed several with BofA for instance but it took forever just to get the HAFA short sale agreement. 

 

Nov 04, 2010 04:12 AM #1
Rainmaker
502,944
Terry McCarley
REMAX Realty Team - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

I received my first HAFA approval this week - the buyers are cash and immediately did the inspections are we are scheduled to close next Friday.  The lender on this particular file is Chase.

Nov 04, 2010 04:50 AM #2
Anonymous
Anonymous
Would u pls qualify forever? From the time the bank ordered the hafa appraisal how long to get the ssa?
Nov 04, 2010 05:01 AM #3
Rainer
123,420
Mike Linkenauger
Jacksonville, FL
Short Sale Specialist Network

HAFA has been a big bummer, but we expected alot of this.  Hopefully the new guidelines will help some.  As one of the new HAFA program guidelines that went into effect Feb. 1st, 2011, the 31% debt to income ratio does NOT need to be proven by the borrower.  In other words, it is like a "stated income short sale" to some degree!  Pretty good news for the program.  We have a great discussion and info group for the HAFA short sale program, and we are releasing an updated HAFA guide next week as well - www.theshortsaleguide.com/group/hafaprogram

Mar 02, 2011 05:11 PM #4
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Rainmaker
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Ronnie Margolis

Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh
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