HAFA Short Sale With Indymac (OneWest)
August 30th, 2011 categories: Short Sales
I recently have closed a few HAFA short sales which is very rewarding as the homeowner receives $3,000 at closing for relocation expenses. However, the HAFA short sales that I have negotiated and closed did not really work exactly as the Treasury Department had originally intended or at least advertised.
When the Treasury Department introduced HAFA, it was supposed to complement HAMP (the Treasury Departments loan modification program). If a homeowner was denied a HAMP loan modification, the theory was that the lender would have all the info required to qualify the homeowner for a HAFA short sale. All they needed to do was determine value of the home and then they could give the homeowner and listing agent an “approved short sale price”. This would speed up short sale approvals for the buyer who wanted to purchase the home.
One of the issues is that the HAFA program was voluntary to the lenders. I believe that since it was voluntary, the banks sort of created their own versions and processes.
This brings me to my news about Indymac (OneWest). About 3 weeks ago a client was referred to me for a short sale. After speaking to the client I learned that they had been denied a HAMP loan modification by Indymac. So I told them I thought they might be eligible for a HAFA short sale, but I would have to call lender about their process. About 2 days later they actually received a letter from OneWest asking if they would like to particiapte in HAFA. My clients signed and we faxed in. Bank ordered an appraisal within 5 days and within 10 days the bank qualified the homeowners for a HAFA short sale.
What this means is that I have a pre-approved price so once I put on market they will be able to approve in 5-10 days – this is HUGE! My homeowners will receive $3,000 at close of escrow from lender and we have 120 days to find a buyer and close on the property.
It is nice to see a lender execute the HAFA process as it was intended. These homeowners have been through a lot with trying to keep their home and this was finally good news. While they will not have a loan modification to stay in their home, this will likely be a successful short sale and a little financial reward for the homeowners.
If you are considering a short sale or want more information about whether or not you will qualify for HAFA, give me a call on my cell at 480-201-4185 and I would be happy to listen to your situation.
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