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Today I got a call from the listing agent on a Sunnyvale Short Sale where my buyer is waiting patiently. The agent said that the file went into HAFA limbo. A new wrinkle in short sale submission is HAFA elegibility testing. When a short sale is submitted many banks are automatically sending the file for HAFA review, to see if the owner qualifies. the problem is that too often either the buyer does not qualify and you have lost 6-8 weeks waiting for a reply. In this case the file just got lost in the HAFA department but the point here is that the banks are doing this automatically. The seller has to specifically ask to be taken out of the program when you submit the short sale package or it will go into auto review. Since up to this point less than 10,000 HAFA short sales have been approved nation wide it is a real long shot. Since not only does the seller have to qualify, but the investors on the loan and all mortgage insurance holders have to approve the pay off. It may be that the revamped HAFA program may have better success, but until I see those numbers I will not believe it. My short sale sellers have opted not to roll the dice, but instead try to move on with their lives sooner rather than later. So now I have another question to ask the lisiting agent before submitting a short sale offer, "Is the Seller applying for HAFA?" If so, it is a good bet that there will be an extra 2 months added on to the short sale unless they get approved for the buyer, the price, and the investor's ok ahead of time. If not I will remind the listing agent to opt out.
If you have any questions about short sales please feel free to contact me.
Keller Williams Realty
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Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales