The government was kind enough to intervene with a new plan called HAFA, which was intended to give incentive to both the Seller and the Seller's bank for completing a short sale.  The Seller would receive $3000 for successfully completing a short sale.

Real World $3000 HAFA program: See Flying Pig to the left

The program is so riddled with red tape and qualifications that barely anyone is actually TRULY qualified.  If the seller is qualified, it's up to the sole discretion of the bank to participate!

If the bank participates, they waive their right to collect the deficiency in the future - in Florida.  (All states have different laws for collecting balances....speak to your friendly short sale attorney).

How many people have been approved for a HAFA short sale?  342 total home owners in the entire United States since the program was announced in April 2010 through November 1st, 2010.

Wall Street Journal HAFA Short Sale Article Here.

342 out of how many Short Sales in the same time period?  Unknown.  However their have been 700,000 HAMP Loan Modifications get denied, so obviously a good portion of these would turn to short sale.   I've had several calls over the last few months saying, "We were denied for a loan mod, but the bank said we are pre-qualified for a HAFA short sale".

Sure, some people are pre-qualified for a HAFA Short Sale, but actually getting one is almost a joke.  What's bad:  I see "Short Sale Experts" advertising that they can get you, the Seller, $3000 in a HAFA short sale.  Have they seen the stats?  Have they ever gotten anyone approved for the $3k?

Point of Information: Of the 342 HAFA approved Short Sales in the United States, I've had 1 seller collect the $3000 and another seller will be closing and collecting their $3000 in the next 30 days. 2 out of 342.  Was it anything I did?  No.  Was it anything the Sellers did? No.  Was it anything the Short Sale Attorney did? No.  It all comes down to the bank, and everything just fell into place for these 2 home owners.

If you are a Seller who needs to Short Sale, don't bank on the HAFA deal.  Your chances are slim to impossible.  Instead, talk with a Short Sale Attorney about your hardship, and get the house on the market ASAP with a REALTOR who knows short sales. Meet Brad. If you get a HAFA deal, you may just be #343.

Posted by Brad Officer on
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