May 21, 2010

Tip 21-2010: Short Sales & HAFA

It has been over a month since the new Treasury Department regulations (April 5) to simplify short sales went into effect. These guidelines are supposed to shorten the short sale process, allow for a move-out allowance for the Seller and create uniform forms. Unfortunately, the lenders and their short sale departments still have not caught on as to how to implement HAFA (Home Affordable Foreclosure Alternative).

To date, the lenders we are negotiating with have been slow to accept and implement HAFA. According to the guidelines, if a borrower has been turned down or failed with a loan modification, the lender is supposed to send a HAFA application for a short sale. To date, none of the lenders where short sale situations in which HAFA may apply, have agreed to send the HAFA forms. We are still trying to get these lenders to recognize that HAFA applies and will keep you informed on our progress. Hopefully sometime in the future, HAFA will offer some improvements to the short sale landscape. For now, it’s the traditional short sale process (numerous calls, emails and misplaced documents) for any short sale negotiation.

Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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