A Caveat Emptor About the HAFA Short Sale Program

By
Real Estate Agent with RE/MAX Gold DRE #00697006

margie from minneapolis at old sacramentoReading Mike Watson's blog this morning gave me the inspiration for mine. That's one of the great things about belonging to an online group like this -- apart from the fact that if AR would have me as a member, maybe I shouldn't belong -- but I get great ideas from other writers. In one of my Sacramento short sales last week, the seller asked her lawyer if she could apply for the HAFA short sale program. That's because there are many benefits to the HAFA short sale program such as:

Now, not every Sacramento short sale seller needs a lawyer. In fact, many absolutely do not need to hire a lawyer to do a short sale, but they absolutely, positively should obtain legal and tax advice upfront. But this seller had hard-money loans and was concerned about protection. Her lawyer had insisted on putting the home on the market right away.

Well, in the past I've had a few lenders such as Bank of America convert regular short sales into HAFA short sales, but that practice is going away. This was a PNC short sale, and PNC said no can do. It won't convert the short sale to HAFA because we've already submitted an offer. The only way to do it is to cancel the offer and submit to HAFA, or forget about HAFA all together.

When I'm not being a Sacramento short sale agent and dealing with HAFA, I'm running around Old Sacramento (above) with my sister, Margie, from Minneapolis. It's been a lot of fun hauling my sister around my neighborhood in Land Park and showing her how delightful Sacramento is, including why, maybe, she should consider moving here. Ah, today we are going for facial treatments in Land Park. Let me tell ya, life doesn't get any better than that.

Photo: Elizabeth Weintraub, Old Sacramento, shot with BlackBerry Bold

Posted by

elizabeth weintraub

 

 

Weintraub and Wallace Realtors

 

 

Elizabeth Weintraub reviews

 

 

 

Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
California Sacramento County Sacramento
Groups:
Posts to Localism
Short Sales Specialists
Lyon Realtors
Club Chaos
Diary of a Realtor
Tags:
deficiency judgment
elizabeth weintraub
short sale
sacramento short sale
land park agent
sacramento short sale agent
hafa short sale
lawyer short sale

Spam prevention
Show All Comments
Ambassador
807,548
. 4Terra Land Brokers .. 828-776-0779 Asheville NC
REAL ESTATE RESOURCES & NETWORK - Asheville, NC
What's Most Important to YOU? Call(828)-776-0779

Good info...and most of all I enjoyed seeing your sister in Old Sacramento...imagining how much fun the two of you are having =)

Nov 29, 2010 03:03 AM #1
Rainmaker
596,893
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

One of the issues on which a seller should seek up-front advice is whether moving out of a personal residence (to, say, move out-of-state to replace a lost job for one spouse and obtain a better job for the other spouse) is really worth it.....in terms of a lot opportunity to escape liability for deficiencies under these programs.

Once you have already made your move......you apparently no longer qualify -- because the home is not a personal residence.

Nov 29, 2010 04:27 AM #2
Rainmaker
2,189,557
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

My sister is having a riot. She swept up all of the leaves in my back yard today as I worked. She said it gave her a chance to experience fall once again. That's because it's snowing in Minneapolis and fall has been long gone.

Hi Jim: There is a time exemption in the HAFA process for sellers who have had to relocate, so yes, they are still covered under HAFA. Just had sellers go through a similar situation, and HAFA considered the home to still be their personal residence because they had not bought another and were forced to move.

Nov 29, 2010 01:06 PM #3
Rainmaker
596,893
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Elizabeth -

I guess knowing little details like that one is why you are THE Sacramento Short Sale Agent.

Thank you.

Nov 29, 2010 06:03 PM #4
Rainmaker
472,839
Colleen Fischesser Northwest Property Shop
RE/MAX Advantage | Managing Broker - Chelan, WA
A Tradition of Trust in the Pacific NW since 1990!

I read the other day that only about 350-ish homes have actually closed under HAFA. It's a big joke in my opinion. I'm working one HAFA short sale right now which took 6 months to be approved into the program and it's not going to get approved under HAFA because their approved price was $50k over the price we'd been listed for for more than 4 months. Sigh....oh well, it was nice to dream there for about 5 seconds that HAFA would be the answer.

Nov 30, 2010 12:15 PM #5
Rainmaker
2,189,557
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Happy to help out, Jim.

Hi Colleen: Well, I haven't counted how many HAFA short sales I have closed so far -- I'm guessing maybe a half dozen or so. Most of my sellers opt out of HAFA or they don't qualify for HAFA. But the HAFA short sales I have done have been pretty straight forward and easy -- especially those through Chase Bank . . . knock on wood.

Nov 30, 2010 01:07 PM #6
Ambassador
3,085,243
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

We're learning the same thing about HAFA.  It's all in the timing.  Of course, to us it makes no sense that a bank wouldn't take a regular short sale and convert it to a HAFA short sale.  But, it IS a government program which instantly means there will be red tape that seems meaningless and pointless.

Nov 30, 2010 01:20 PM #7
Rainmaker
2,521,346
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Elizabeth - I notice in the picture above, the locomotive has turned around and is using its nose to push the weight of the train down the track.  It kind of reminds me of you working your nose off to successfully close short-sales for your clients.  Every town needs one:-)

Dec 01, 2010 04:28 AM #8
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
2,189,557

Elizabeth Weintraub Sacramento Realtor Top 1%

Put 40 years of experience to work for you
How much is my home worth?
*
*
*
*
Spam prevention

Additional Information