Module 6:Module 6:Buyers, Buyer’s Buyers, Buyer’s Agents & HAAgents & HAFFAA

6-177

HAHAFFA Significance for BuyersA Significance for Buyers

• Traditional short sale approval may take long time

• Buyers back out when wait is too long

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HAHAFFA Pre-Approval AttractiveA Pre-Approval Attractive

• HAFA approval or disapproval within 10 Biz days

• HAFA pre-approved homes more attractive to buyers

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Delays PossibleDelays Possible

• If not HAFA pre-approved:–Seller may choose Alt. RASS

process

–Servicer may solicit seller into HAFA & Alt RASS

–Counsel buyer about HAFA pre-approved properties

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HAHAFFA Rules for BuyersA Rules for Buyers

• Arm’s length sale

• 90 day re-sale restriction

• Specific wording required in contract

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HAHAFFA Rules for Buyers A Rules for Buyers (cont’d)(cont’d)

• No lease-back or buy-back agreements

• No money to buyer

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With Buyer’s Offer, Submit:With Buyer’s Offer, Submit:

• All addenda

• Proof of Funds

• Financing pre-approval on buyer’s lender’s letterhead

6-7

If all required items are not in original offer, seller might delay accepting the offer to prevent

non-compliance with the 3 Day rule for submission of contract to servicer

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Incomplete Offer ScenariosIncomplete Offer Scenarios

• Seller may reject and another buyer wins the day

• Submitted, incomplete package rejected by servicer

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Closing Dates & Time FramesClosing Dates & Time Frames

• 45 days begins at contract acceptance

• 20-22 days may elapse before servicer approval

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• Plan closing date• Line up inspections,

surveys, etc.

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ContingenciesContingencies• Standard contingencies acceptable

• Probable problem contingencies:–Must sell home before closing– Seller pay buyer’s closing costs

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Closing CostsClosing Costs• SSA indicates costs

servicer will pay

• Ask listing agent

6-1180

Is Checklist on MLS?Is Checklist on MLS?• Listing agent may have uploaded list

of docs & instructions

• If so, follow it

• If not, contact listing agent

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Meet or Beat List Price?Meet or Beat List Price?• List price is pre-approved

• Meeting or beating list price almost assures approval

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Improve Buyer’s ChancesImprove Buyer’s Chances• Learn HAFA rules

• Keep required contract language in word processor or standard addendum

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Counsel the Buyer on…Counsel the Buyer on…• Short sale basics

• HAFA rules

• Proof of funds and/or financing pre-approval requirements

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Counsel the Buyer on…Counsel the Buyer on…• HAFA time lines

• Likelihood of approval if list price is met

• Unacceptable contingencies

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HAFA Listing RemarksHAFA Listing Remarks• Remarks mentioning HAFA may not

mean SSA has been issued

• Don’t assume HAFA pre-approval

• Ask listing agent

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How Many Liens?How Many Liens?• One lien easiest

• Chances of success diminish with more liens

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Subordinate LiensSubordinate Liens• Ask listing agent:– How many, including HOA liens?– How much owed?– Status of negotiations?

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HAFA WorkflowHAFA Workflow

Straight & Fast

A few curves

Twists & Turns83

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HAFA WorkflowSSA & RASS

836-21

Situation #1 Non-HASituation #1 Non-HAFA FA Transactions in ProgressTransactions in Progress

• Borrower may be offered HAFA opportunity by servicer

• Seller’s decision

83

Treasury & Fannie Mae Loans

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Situation #1 Non-HASituation #1 Non-HAFAFA Transactions in ProgressTransactions in Progress

• HAFA not available

83

Freddie Mac Loans

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Situation #2 Situation #2 Property Currently ListedProperty Currently Listed

• Determine eligibility

• Request short sale

• Follow Situation #3 guidelines

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Situation #3Situation #3Listing Property TodayListing Property Today

• Determine eligibility

• Request short sale

• Follow Situation #3 guidelines

83-866-25

HAFA WorkflowAlt. RASS

876-26

Situation #4 Situation #4 Short Sale Offer Today, Seller Not Short Sale Offer Today, Seller Not

Pre-ApprovedPre-Approved

• Determine eligibility

• Submit contract with Alt. RASS

• Follow Situation #4 guidelines (not for Freddie Mac loans)

87-896-27