Well, I have found that it really depends on the servicer as to how fast your HAFA Short Sale is going to move. Let's take a look at 2 of my HAFA Short Sales to better understand the process.
PLEASE NOTE: Both of these Sellers have loans with Bank of Ameirca. There are no subordinate liens or mortgages on either property. Also, both had applied for and were denied Loan Modifications.
SHORT SALE #1
Sellers #1 had gone through the HAMP Modification Program and were declined and therefore elected to do a Short Sale.The sellers and I contacted Bank of America regarding a HAFA Short Sale in March 2011. After being transferred 5 times, we finally were connected to the correct department and were provided with instructions to apply for HAFA. One week after our meeting, the Sellers provided me with the completed paperwork and the set of documents were submitted to the loan servicer assigned to the Short Sale. The Servicer instructed me NOT to list the home until I received the Short Sale Approval with all terms and price. A few weeks passed and after some follow up on my part and the seller's part, the appraisal was completed. This was in the latter part of April. After weekly follow up to the Loan Servicer, who told the Seller they would have an answer 3 weeks ago, we still have NO Approval. It is now the middle of June and we have still NOT received a Short Sale Approval NOR do I have permission to list the home as yet. Also to note, this servicer did not instruct the documents to be submitted through the Equator system. All documents were faxed in as instructed. I'll keep you posted on this!
SHORT SALE #2
Sellers #2 approach me the first week of May 2011 with a Bank of America denial for modification. The Seller and I contact Bank of America and are told to Initiate the Short Sale in Equator to determine if the Seller is eligible for HAFA. The system indicates that the Seller is eligible. To note, Short Sale #2 has Loan Servicer #2. I immediately list the home. The documents needed by the Loan Servicer #2 are uploaded into the Equator System. I am given no restrictions on this file for listing. The home goes on the market is shown several times. Two weeks after the initial upload, the appraisal is completed and submitted. The property then goes under contract and the file is transferred to valuation the first week of June. We are now awaiting an approval or counter offer.
What a dramatic difference all because of the different servicer involved!
Watch this video to learn more about HAFA Short Sales.
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