HAFA short sale program -- so far so typical

In the last few days I have spoken with third part negotiatiors, an active agent in my office and few agents outside of my office about HAFA short sales. Banks are setting up BPO's and appraisals more rapidly but other than that the banks/servicers are not really all that concerned about following HAFA guidelines. I would say they are making it up as they go along.

Different departments for the same servicer give completely opposite pronouncements on procedures and requirements. If I do not like what I hear one day, I call another number the next day and hear opposite. For instance...One day BofA said we can't go through HAFA if there is a Notice of Sale... then the next day we were told we have to go through HAFA if there is a Notice of Sale.

Our take so far:

1. Watch out for high pre approvals. (this is likely to be a permanent problem in my opinion unless prices start to double dip.)

2. Watch out for non negotiable prices. Some lenders have said if we do not get an offer which meets their pre approved price they will not consider the short sale. Other banks do not really give a substantive response when asked the same question.

3. Watch for non compromising seconds. If the second lender is unwilling to release the deficiency, you may get stuck with a foreclosure. So watch out. Until seconds have a track record of releasing the deficiency, sellers may wish to opt out of HAFA.

4. Watch out for B.S. relocation cash. The banks have been misleading un represented homeowners about how much money they will receive to relocate and so have many Realtors. Borrowers get pissed when the cash they were promised disappears.