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New Short Sale Programs and Best Practices with HAFA and Bank America

HAFA is the last ditch government effort to keep folks out of foreclosure

HAFA is the last ditch government effort to keep folks out of foreclosure

Sacramento HAFA Short Sale Specialist Reports on Newest Government Short Sale  Programs and Short Sale Processing Industry Change.

If you are thinking about a HAFA short sale in Sacramento or just looking for HAFA Short Sale Information in Sacramento, you will want to return here to SACRAMENTO SHORT SALE CENTER and wereheretohelp.org; we are your source for great Sacramento HAFA short sale information.

HAFA and Equator

I am really liking the direction the short sale processing world is headed right now… we are seeing huge changes in the way short sales are handled by servicers. I just hope the trend continues and the short sale departments get trained on how to use the great systems and programs the Short Sale Gods have given them lately!

Eventually, between Equator and HAFA, the short sale should become more like a traditional real estate transaction. If you are a Sacramento area homeowner looking to short sale, As long as you are working with a Certified Sacramento HAFA Short Sale Expert

So what is Equator; Bank America’s Equator System?

Equator (they used to be called REOTrans.com) is an online Short Sale Technology  Platform, REOTrans has been around for years and have been used by  most banks as the technology portal to dispose of their Default real estate.  It is a system that allows the asset manager, or short sale negotiator to quickly and efficiently handle short sale and bank owned real estate transactions, it allow for storing and retrieving documents, communicating with others involved in the transaction and then allows for quick reporting.

Many other banks are using the portal for their shortsale processing also. GMAC, for sure and many more sound like they will be coming on line.   The industry has used them for years for their REO’s, in fact, 17 of the top 25 lenders nationwide and have handled over 63 million transactions that represents over $67 billion in transactions. So they just basically customized an already perfected system when they spent  months building a Bank of America Short Sale Portal.


What is a short sale portal?

Go ahead- Click the link above to go see the BofA Short Sale Processing System. Bank of America now has a short sale processing system built just for them.  This new system has already changed the way they handle and process short sales …and it is powered by the Equator technology platform. So again, this is not really a new system, its just new to Bank of America; this is in many ways the same platform that has processed millions of transactions and it has just been customized for short sales.

Please understand though, this is just short sale transaction handling technology. There still has to be a trained operator to make it go.  Its kinda like having a spaceship all fueled up on the launch pad while the  astronauts are still in training;  we have a long way to go before the negotiators and operators can use this stuff perfectly.

So what is HAFA? …and where did it come from?

HAFA; the last ditch government program that was recently developed to give folds a way to settle their mortgage without a foreclosure on their record. It is a last resort to staying out of foreclosure. Remember HAMP?  What a flop!  Well,  HAFA is the governments way to help  the people who either did not qualify,  could not qualify, or did not want to do HAMP and keep their home from going back to the bank.  By keeping the home off the REO list, they keep the homeowner out of foreclosure, improve our neighborhoods  and hopefully speed us through this languishing housing recovery.

Directly from the Making Home Affordable Website;

The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or deed-in-lieu.

In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer – provided title is free and clear of mortgages, liens and encumbrances. With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.

How is BofA and Equator working with the government HAFA program?

Read about Bank of Americas and the HAFA program on Equator

The HAFA program is being administered by a third party… Some of our Short Sale Files on  Bank America’s Equator Short Sale System getting “campaign Codes” or HAFA codes. This just means that they are requiring the seller or homeowner to call in and talk to the third party, who will explain the program, determine if the y qualify and ask if they want to participate.

Sometimes an email is sent from the Equator operator, (or “generic negotiator”)  that says something like:

“Hello, currently your file is ready to be negotiated, but unfortunately the system has pulled files per the new Government Program HAFA, created by the President. These files are pre-qualified for the program systematically by the guidelines of that program…”

They always go on to say that there is nothing neither the negotiator or I can do at this point, because the SELLER must locate a letter sent by a third party vendor and they must contact the vendor and tell them whether they are interested or not… they say this is a government program and it is between the government and our seller. It also goes on to say that the system has caused  equator to freeze/hold until they contact the vendor and let them know how they want to proceed.

What other foreclosure prevention programs are there?

There are a number of government anti foreclosure programs available to provide you with solutions. These government programs have been getting a lot of attention lately.  Especially the HAFA government short sale program., but there is also HAMP,  HARP and also 2MP. See which homeowner options program below matches your situation best, and then take the survey to see if you are eligible for government programsCHECK ELIGIBILITY NOW

Take action, find out more about your options and learn if you are eligible. If your situation is urgent, or you have further questions, feel free to Contact us Today At Forth Hoyt’s Sacramento Short Sale Center

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