I recently obtained a client who lost his job a year ago.  He did all the right things.  He contacted his lender, applied for a loan modification, made the trial payments which extended way past the three month trial period.

When he could see that his loan modification was going nowhere, he went to a HUD counselor and completed the credit counseling.  His loan server finally said he was not qualified for HAMP.  BUT, he did qualify for an approved HAFA sale!

That's where I came in.  I received this referral from one of the best and most knowledgable brokers in Southern California, an expert on HAMP and HAFA. We thought it was a slam dunk.  The short sale was entered into the Equator platform.  I was missing just one thing.  Where was the BPO?  What was the approved HAFA price?

Everytime I asked the negotiator, I was told it was ordered, it was being reviewed, and on and on. I did comps and listed it accordingly.  According to HAFA guidelines, I had 3 months to market it.  Imagine my surprise when after three weeks they sold it at an auction.

This case has been reported to the Department of Treasury, Department of Justice, State Attorney's Office, along with several other agencies. I have been interviewed by the National Association of Realtors in D.C.  The client reported it to HUD and contacted an attorney.  The result?  The banks don't have to do anything they don't want to do.  The government mandates are just "suggestions"  Hear it loud and clear...they don't have to do HAFA!

I don't want to hear about HAMP or HAFA anymore.  This client was crushed; he actually believed in the system. I've had enough. I'm glad to see standard sales are making a comeback.
E-mail me when people leave their comments –

You need to be a member of REO Pro Network to add comments!

Join REO Pro Network

Comments

  • Wow, good for you Julie.  It goes to show, each case is different.  Makes it hard to know what will work for the next SS deal.
  • I reported one to the Dept of Treasury and the bank was on top of that file like you wouldn't believe. I had an approval within 48 hours of filing the complaint.

     

  • So I am guessing the banks are making more money by foreclosing on the property then by allowing a Short Sale to happen.  So sad for the clients.
  • Jan, I totally agree with you on this issue, H/H has been on nightmare on most of my SS files, they will drag these files forever using realtors freeeee services to make their process and will foreclose eventually or sold at the auction.

This reply was deleted.