Kim and I are excited to run across this video on HAFA from Jeff Lischer, communications Representative for National Association of Realtors…Great Video…15 minutes…but worth it if you are in need fo assistance.
Jeff Lischer…NAR Representative Explains HAFA…Short Sales…See Kris & Kim Darney Blog
by Admin | Apr 5, 2010 | Advice on Selling with No Equity in Southern California, Bank of America, Frequently Asked Q&A about Short Sales, HAFA Government Program, Short Sales Stop Foreclosure, Short Sales, Foreclosures,Current Events, Wachovia Short Sale | 2 comments
Does the HAFA guideline restricting lenders from asking for cash contributions or promissory notes at closing apply to MI companies?
I have a recent shortsale approval (2 liens both BOA) where the MI company that asked for seller contribution $2500 cash at closing (prior to listening to Jeff Lischer replay, the seller had a choice of either the $2500 cash at closing or $5000 promissory note paid over 2 years/no interest).
Mortgage insurance (MI) is not covered under HAFA.
Mortgage insurance takes precedense over any liens and over HAFA.
Why? HAFA only applies to Banks that accepted monies under TARP…Government Banking Bailout.
Actually, that is a very low payoff for MI in a short sale situation. I would take what the MI company is offering. If you or your clients are unable to pay the $2,500.00 ask that they spread the payments over 5 years or whatever works…% years is under $85 per month…not bad for getting rid of all that debt…is it?