(This blog is a re-post, written by. Melissa Zavala – To view the original post click here)

I was recently contacted by an agent who had just received her HAFA certification and wanted to know how to obtain those pre-approved short sale listings that are commonly associated with the government’s HAFA program.

If you are unfamiliar with the acronym, HAFA, it stands for Home Affordable Foreclosure Alternatives, which is the government’s short sale program. As part of this program, you may recall that short sale sellers can receive a $3000 incentive at closing and deficiency judgments will be waived—if (and only if) the seller qualifies for the program.

If you are a HAFA certified agent, than you know that not all banks and not all investors participate in this program. For this very reason, it is sometimes hard to identify whether a specific seller will qualify for the program. For example, a seller with two loans at Bank of America may only qualify for HAFA if both of the investors are participating in the program. You see, even though Bank of America does participate, not all of the investors for which Bank of America services notes participate in the government’s program. (A little bit confusing, I know.)

Another great component of the HAFA program is that short sales can be pre-approved. If there is not yet a buyer for the property and the seller does qualify for HAFA, a package can be submitted and the listing agent and/or the seller will receive a pre-approved purchase price that is good for 120 days.
Obtaining Pre-Approved Short Sale Listings.

Let’s return to the question from the agent regarding HAFA listings. This particular agent wanted to know how to obtain the listings for those pre-approved HAFA short sales. Well, a short sale is not like an REO. In an REO the bank (who is the seller) selects the listing agent for the property—generally someone who is experienced with REOs. In a short sale, the bank is not the seller of the home—the bank merely ratifies the purchase contract and approves the acceptance of a purchase price lower than the loan balance.
It is the seller who selects the listing agent. So, to answer the agent’s question about how to obtain these pre-approved short sale listings, you need to go after them in the same way that you would any other listing. There is really no way to avoid hard work, good marketing, a strong sphere of influence, and word of mouth.

One Response to “Becoming HAFA Certified”

1. 1
   Marty Macisso Said: @2:31 pm 
   

   a recent blog post of mine:) Good content

   Buying Short Sales: Understanding the Short Sale Addendum will make or break your deal!
   Posted by Marty Macisso

   This is a new era, a new day and age of Real Estate negotiation.

   One aspect to the Real Estate transaction is Contract Negotiation. When a homebuyer and seller agree to a purchase price and general terms, this is laid out in writing and a Binding Contract is born. This contract was stone, and although we Realtors are not attorneys, our knowledge on drafting contracts and intrepting the language differentiates the good from the bad agents.

   Fast forward to Today! Millions of active homes on the market are now Short Sales. The most attractive pricing are Short Sales and REOs. MOST AGENTS DO NOT KNOW how to structure and interpret a Short Sale Addendum.

   An addendum to a contract allows for parties involved to add certain elements to a real estate deal without having to re-write the entire contract over again. Usually its a deadline extension, or a price change, etc…its not a big deal in simple terms to understand how to draft an addendum.

   The Short Sale Universe has its own set of rules. THE SHORT SALE ADDENDUM is more powerful and important than the contract itself!!!

   For example, in the great State of Maine, our short sale addendum has TWO major caveats, where most Buyer and Seller agents overlook and ingnore. Typically, agents just submit the entire Zip Form generated Short Sale addendum with the mindset that it’s a necessesary part of a short sale, because the Purchase Price is decided and approved by the Seller’s Bank. Right and WRONG!

   There is language that allows a Buyer to back out at any time prior to receiving Short Sale consent or approval from the lien holder. When this is left intact and not redacted and negotiated out, it leaves a Short Sale seller vulnerable to the buyer getting antsy for waiting around.

   HOW IS THIS THEN, A BINDING CONTRACT? There’s nothing binding about it.

   Secondly, and conversely, the last paragraph entitles the Seller to continue to market the property for OTHER offers, typically the buyer agents assume this means that it allows the seller to market for BACKUP offers. This is a deadly assumption and one that again….unwinds the binding contract.

   It enables the listing agent to take other offers and boot the buyer agent out the door, no matter the time frame or whether you have a “contract” or not.

   We cannot practice Law as a Realtor, however, we have in our authority, the ability to know what our Realtor forms mean, and change the language in them.

   I suggest we use that ability.

   Make sure you and/or your agent knows this practice, as it can cost you a house. Literally.

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