Short Sale, Foreclosure and Strategic Default


Thursday, January 6, 2011

HAFA Govt Scam, so far, but could get better

Although we have closed 2 HAFA short sales, the program is torture for any anyone who cares about their time, their schedule, their sellers or their buyers. 

Now we have proof see the article below.  There have only been 661 closed HAFA short sales in the country.

My speculation is this...
The govt has been complicit with the FED and the banks... who are the shareholders in the FED.
They new if all these upside down homeowers let their properties go at once real estate prices would get so low even the found could not bail out their insolvent banker friends. 

So they created these loan mod and short sale programs to slow down the supply of real estate hitting the market. 

1. Create big funnel
2. Only let the most persistent and most organized out the other end with a loan mod or short sale. 

We know about 5% of applicants actually got real loan modifications. 
And, we know on average Realtors only close 25% of their short sales. 
Now we know that all those Realtors claiming to be HAFA short sale experts, have probably not even closed a HAFA short sale. 

The moral of the story is.  If you are upside down... make sure you work with someone who can prove they have the systems in place to short sale approvals on terms you find acceptable.  There are many so self proclaimed short sale and HAFA experts... just ask them to show you HAFA approvals and closings. 

Don't fall for the government or real estate industry "expert" designations.  Only work with people who document results.

And most importantly have an asset protection plan in place before you begin your loan workout.  You must have a backup plan because you plan A might not work.   

HAMP « HousingWire
The Treasury Department took action in December eliminating some rules it said have held back short sales through the Home Affordable Foreclosure Alternatives program.

HAFA was launched in April 2010 to provide an incentive to servicers and investors for pursuing short sales and deeds-in-lieu of foreclosure. The program was designed for homeowners who fell out of the Treasury's Home Affordable Modification Program and was touted as a new standard for short sales.

But both HAFA and HAMP have struggled. The Treasury has spent only $4.3 million through HAFA, inducing roughly 661 short sales since the program launched, according to the Congressional Oversight Panel, the Troubled Asset Relief Program watchdog.

1 comment:

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