module 6: buyers, buyer’s agents & hafa 6-1 77. hafa significance for buyers traditional short...
TRANSCRIPT
Module 6:Module 6:Buyers, Buyer’s Buyers, Buyer’s Agents & HAAgents & HAFFAA
6-177
HAHAFFA Significance for BuyersA Significance for Buyers
• Traditional short sale approval may take long time
• Buyers back out when wait is too long
6-277
HAHAFFA Pre-Approval AttractiveA Pre-Approval Attractive
• HAFA approval or disapproval within 10 Biz days
• HAFA pre-approved homes more attractive to buyers
6-377
Delays PossibleDelays Possible
• If not HAFA pre-approved:–Seller may choose Alt. RASS
process
–Servicer may solicit seller into HAFA & Alt RASS
–Counsel buyer about HAFA pre-approved properties
6-477
HAHAFFA Rules for BuyersA Rules for Buyers
• Arm’s length sale
• 90 day re-sale restriction
• Specific wording required in contract
6-578
HAHAFFA Rules for Buyers A Rules for Buyers (cont’d)(cont’d)
• No lease-back or buy-back agreements
• No money to buyer
6-678
With Buyer’s Offer, Submit:With Buyer’s Offer, Submit:
• All addenda
• Proof of Funds
• Financing pre-approval on buyer’s lender’s letterhead
6-7
If all required items are not in original offer, seller might delay accepting the offer to prevent
non-compliance with the 3 Day rule for submission of contract to servicer
78
Incomplete Offer ScenariosIncomplete Offer Scenarios
• Seller may reject and another buyer wins the day
• Submitted, incomplete package rejected by servicer
6-879
Closing Dates & Time FramesClosing Dates & Time Frames
• 45 days begins at contract acceptance
• 20-22 days may elapse before servicer approval
6-9
• Plan closing date• Line up inspections,
surveys, etc.
79
ContingenciesContingencies• Standard contingencies acceptable
• Probable problem contingencies:–Must sell home before closing– Seller pay buyer’s closing costs
6-1080
Closing CostsClosing Costs• SSA indicates costs
servicer will pay
• Ask listing agent
6-1180
Is Checklist on MLS?Is Checklist on MLS?• Listing agent may have uploaded list
of docs & instructions
• If so, follow it
• If not, contact listing agent
6-1280
Meet or Beat List Price?Meet or Beat List Price?• List price is pre-approved
• Meeting or beating list price almost assures approval
6-1380
Improve Buyer’s ChancesImprove Buyer’s Chances• Learn HAFA rules
• Keep required contract language in word processor or standard addendum
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Counsel the Buyer on…Counsel the Buyer on…• Short sale basics
• HAFA rules
• Proof of funds and/or financing pre-approval requirements
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Counsel the Buyer on…Counsel the Buyer on…• HAFA time lines
• Likelihood of approval if list price is met
• Unacceptable contingencies
6-1681
HAFA Listing RemarksHAFA Listing Remarks• Remarks mentioning HAFA may not
mean SSA has been issued
• Don’t assume HAFA pre-approval
• Ask listing agent
6-1781
How Many Liens?How Many Liens?• One lien easiest
• Chances of success diminish with more liens
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Subordinate LiensSubordinate Liens• Ask listing agent:– How many, including HOA liens?– How much owed?– Status of negotiations?
6-1981
HAFA WorkflowHAFA Workflow
Straight & Fast
A few curves
Twists & Turns83
6-20
HAFA WorkflowSSA & RASS
836-21
Situation #1 Non-HASituation #1 Non-HAFA FA Transactions in ProgressTransactions in Progress
• Borrower may be offered HAFA opportunity by servicer
• Seller’s decision
83
Treasury & Fannie Mae Loans
6-22
Situation #1 Non-HASituation #1 Non-HAFAFA Transactions in ProgressTransactions in Progress
• HAFA not available
83
Freddie Mac Loans
6-23
Situation #2 Situation #2 Property Currently ListedProperty Currently Listed
• Determine eligibility
• Request short sale
• Follow Situation #3 guidelines
836-24
Situation #3Situation #3Listing Property TodayListing Property Today
• Determine eligibility
• Request short sale
• Follow Situation #3 guidelines
83-866-25
HAFA WorkflowAlt. RASS
876-26
Situation #4 Situation #4 Short Sale Offer Today, Seller Not Short Sale Offer Today, Seller Not
Pre-ApprovedPre-Approved
• Determine eligibility
• Submit contract with Alt. RASS
• Follow Situation #4 guidelines (not for Freddie Mac loans)
87-896-27