The Differences Between the Cooperative Short Sale vs the HAFA

Real Estate Agent with RE/MAX Gold DRE #00697006

bank of america cooperative short saleOne would think that Bank of America would be happy that a short sale agent in Sacramento is opening so many Cooperative short sales on her own. The bank is not spending money to solicit the borrower. The bank is not pounding the pavement. I am bringing these short sales to the bank.

When I open a Cooperative Short Sale in Equator, the first thing that happens is my requests for a Cooperative are ignored. The third-party vendors pursue the HAFA. I send emails that say do NOT review this for HAFA because the seller wants to pursue a Cooperative Short Sale.

Then, I ask the seller to call the customer service number and repeat over and over Cooperative, like a mantra. If the customer service rep at DTS, REDC, AMS -- wherever -- says HAFA, the seller is counseled to say “No, Cooperative.” Yet, the bank opens a HAFA anyway. You’ve gotta ask yourself, why is that? I’ll tell you why I think they’re doing it, and it’s not because they’re stupid, although you may disagree. It’s because there is probably more money in it for the bank.

Read more about the differences between a Cooperative short sale vs the HAFA.

Photo: Adam Weintraub

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Weintraub and Wallace Realtors



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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


Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Pamela Smith 08/16/2012 07:17 AM
  2. Patty Mortara REALTOR CRS | Hunterdon County (NJ) 08/16/2012 11:32 PM
Home Selling
California Short Sales, REO's, and Foreclosures
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Legal Aspects of Short Sales, Foreclosures, Loan Mods
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David Grbich
Realty One Group - - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

I think you are right on Elizabeth but the stupid theory may also be at play. I have had similar experiences where the bank pushes for a loan mod and it takes multiple calls to get them off that track.

Aug 15, 2012 12:27 AM #1
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA
Which is very confusing..they are the ones that brought the cooperative short sale .....and now they have a reluctance?..based on my experience,I think it has to do wit the amou t of the loan..
Aug 15, 2012 01:30 AM #2
Mary Douglas
United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

Thanks for the info Elizabeth-it just seems way more confusing and convoluted than it should be after all this time...

Aug 15, 2012 06:13 AM #3
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I think all banks attempt to do the HAFA qualification first and for exactly the reason you are stating. They get financial incentives to do them.

Aug 15, 2012 08:05 AM #4
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Elizabeth do you think the merry-go-round will ever stop or will they keep adding baskets with new rules and regulations to further confuse agents and the public alike?

Aug 15, 2012 06:40 PM #5
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Elizabeth, they get incentives from the government if they process it as a HAFA. Their first step is to process it as a HAFA. The one I have a loan balance of 1.1 mil and even then, they wanted to put it in as HAFA even they knew it doesn't meet HAFA guidelines. It took only 48 hours to get rejected and processed as a co-op.

Aug 16, 2012 01:42 PM #6
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

My experience with BofA: The Seller wanted HAFA, but they called him and offered co-op.

He accepted( relocation fee 2500), When we closed, the seller got almost 25k( surprise, surprise....did not see it till the very end).

Aug 17, 2012 01:29 AM #7
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Hi Inna: Are you sure it wasn't a typo? I had a cooperative in which the negotiator slipped $25,000 into the worksheet by mistake. They just added an extra zero for some reason.

Aug 17, 2012 04:20 AM #8
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