We have several clients in various phases of the HAFA program. So far I feel as if it's a beneficial program because it all but guarantees the borrower will avoid a foreclosure. It also takes a lot of the guess work out of the short sale process and typically shortens the amount of time it takes to get approval terms after the offer is submitted to the lender. The biggest downside that I've seen so far is if the approved list price is too high. Disputing the value in a HAFA short sale is a challenge.
HAFA Gains Steam with Completed Transactions up 55% in June
08/12/2011 By: Carrie Bay, DSNews.com
Servicers completed 2,213 pre-foreclosure short sales and deeds-in-lieu (DIL) under the government’s Home Affordable Foreclosure Alternatives (HAFA) program during the month of June.
While barely a dent in the number of homes in the pre-foreclosure stage, Treasury’s latest report shows the program is beginning to pick up steam.
The number of completed HAFA transactions climbed 55 percent compared to the 1,428 transactions completed in May. Earlier this year, between the months of March and April, HAFA deals jumped 70 percent.
HAFA has been in place since April of 2010. According to Treasury’s latest report, which covers program activity through June of this year, a total of 10,438 short sales and 316 DILs have concluded through HAFA.
Servicers started 3,631 new HAFA transactions during the month of June, which means an agreement has been extended to the homeowner for terms of a potential short sale or DIL.
Treasury notes that the short sale process lasts at least 120 days under the program, and requires both a third-party purchaser and cooperation of junior lien holders and mortgage insurers.
JPMorgan Chase has completed the most HAFA transactions among participating servicers with 3,596, but Wells Fargo is not far behind with 3,123. Bank of America has finalized 1,873 HAFA agreements, Select Portfolio Servicing has completed 591, Litton Loan Servicing has finalized 483, and the tally for all other participating servicers comes to 1,088.