A perfect example of why HAFA is a miserable failure

A perfect example of why HAFA is a miserable failure

I wasn't always against HAFA. When HAFA was announced last April, I attempted to remain optimistic about the program, despite feeble results from anything else produced by government to ease our housing problems.

Over a year later, I can officially say I hate HAFA. If my clients opt into this program I always do my best to get them through it, but the truth is the success rate of HAFA is unbelievably slow and low. Less than 1 in 10 of those I have seen through the program has actually had a desirable ending with HAFA, and unbelievable amounts of time get wasted in the process.

Just the other day I received another HAFA "approval" that presents many of the usual problems. At least this time it only took us 3 months to get through to the end of the program before we discovered that it was all just a waste of time (as I first suspected).

The "APPROVAL" has a few issues:

The approved list price on the approval was $225,000.

BUT...We have been on market for over 60 days starting at $190k and are now down to $160k with no takers. Furthermore - $225k is actually MORE THAN THE PAYOFF on this loan. If we could get 225k, we wouldnt need to short sell at all!

My client is entitled to $3,000 when he successfully closes within HAFA guidelines.

BUT...My client is a few months behind. He's no longer paying. In order to get the $3,000, he must now begin making reduced payments of almost $2,000/month (which the fine folks at HAFA deemed affordable for him) from now until closing. Four months later (if we close) he can collect his $3,000. What a fantastic deal, right???!!!!

All documentation needed to be returned signed, along with his first $2,000 payment by April 21, 2011, or the deal was off.

BUT...The letter arrived April 25. Ooopppss!! No great loss for us though. After reading through his "approval" my client wisely decided to opt out of HAFA and move forward with a traditional short sale instead.

That's our tax dollars at work folks!