Eligible for HAFA Short Sale became a Traditional Deed-In-Lieu

Balius

LoanSafe Member
Feb 8, 2013
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0
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I have found much of what has been described in these forums and this information exchange very supportive. I have also found out things about my own loan from reading the advice of others in similar situations. Thank you all.

Our (my late husband and I) CW mortgage started in July2007. My local county records still show CW as the lender, they don’t have the mortgage transferred to BOA or BONY.

After years of going through HAMP deny and appeal, BOA told me I did not qualify for any home retention program but would be eligible for the HAFA program.

HAFA short sale marketing period (120+ days) expired on January 2[SUP]nd[/SUP] 2013 without a sale. I was expecting HAFA DIL but after being assigned to a traditional DIL third party on behalf of BOA I realized that I had been changed.

I have a document from BOA website that I downloaded on July 24[SUP]th[/SUP] 2012 during the HAFA short sale period which is has an opening title and paragraph below:

“Bank of America Home Affordable Foreclosure Alternatives (HAFA) Matrix (For loans not owned by Fannie Mae or Freddie Mac)â€

"All servicers that have signed agreements with the U.S. Department of the Treasury (Treasury) to participate in the Home Affordable Modification Program (HAMP) must consider eligible borrowers who do not qualify for HAMP or other foreclosure prevention options including the Home Affordable Foreclosure Alternatives program which includes short sale and deed in lieu. However, each servicer has some discretion in determining additional eligibility criteria and certain program rules. In order to assist borrowers and their representatives in understanding any unique components of a servicer’s HAFA policy, Treasury has developed this HAFA matrix. The summary information in this matrix is prepared solely by Bank of America, N.A. and does not represent any determination by the Treasury as to the servicer’s compliance with the Treasury’s policies and guidance for HAFA. Treasury does not endorse any language or policy described in this matrix. Any questions regarding the information contained in this matrix should be directed solely to Bank of America, N.A."

One of the key elements to this document is a paragraph that describes transition from short sale to deed in lieu:

“All customers who complete the120-day short sale marketing period without selling the property will beoffered a deed in lieu of foreclosure under the Home Affordable Foreclosure Alternatives programâ€

BOA seem to be ignoring their own policies as set out in this document. I asked the short sale department why I was not in the HAFA DIL program and was told that an in house review had been done and I was not considered eligible. The person I spoke with put the file back into review for the HAFA DIL, but going on past decisions from BOA I expect the same result. Does anyone have any ideas as to what I should do next?
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
I have found much of what has been described in these forums and this information exchange very supportive. I have also found out things about my own loan from reading the advice of others in similar situations. Thank you all.

Our (my late husband and I) CW mortgage started in July2007. My local county records still show CW as the lender, they don’t have the mortgage transferred to BOA or BONY.

After years of going through HAMP deny and appeal, BOA told me I did not qualify for any home retention program but would be eligible for the HAFA program.

HAFA short sale marketing period (120+ days) expired on January 2[SUP]nd[/SUP] 2013 without a sale. I was expecting HAFA DIL but after being assigned to a traditional DIL third party on behalf of BOA I realized that I had been changed.

I have a document from BOA website that I downloaded on July 24[SUP]th[/SUP] 2012 during the HAFA short sale period which is has an opening title and paragraph below:

“Bank of America Home Affordable Foreclosure Alternatives (HAFA) Matrix (For loans not owned by Fannie Mae or Freddie Mac)”

"All servicers that have signed agreements with the U.S. Department of the Treasury (Treasury) to participate in the Home Affordable Modification Program (HAMP) must consider eligible borrowers who do not qualify for HAMP or other foreclosure prevention options including the Home Affordable Foreclosure Alternatives program which includes short sale and deed in lieu. However, each servicer has some discretion in determining additional eligibility criteria and certain program rules. In order to assist borrowers and their representatives in understanding any unique components of a servicer’s HAFA policy, Treasury has developed this HAFA matrix. The summary information in this matrix is prepared solely by Bank of America, N.A. and does not represent any determination by the Treasury as to the servicer’s compliance with the Treasury’s policies and guidance for HAFA. Treasury does not endorse any language or policy described in this matrix. Any questions regarding the information contained in this matrix should be directed solely to Bank of America, N.A."

One of the key elements to this document is a paragraph that describes transition from short sale to deed in lieu:

“All customers who complete the120-day short sale marketing period without selling the property will beoffered a deed in lieu of foreclosure under the Home Affordable Foreclosure Alternatives program”

BOA seem to be ignoring their own policies as set out in this document. I asked the short sale department why I was not in the HAFA DIL program and was told that an in house review had been done and I was not considered eligible. The person I spoke with put the file back into review for the HAFA DIL, but going on past decisions from BOA I expect the same result. Does anyone have any ideas as to what I should do next?
I had posted to you in the other thread to contact the executive team, and this would also be a good reason to do that;

Bank of America CEO:

[email protected]<wbr>bankofamerica.com
Direct: 1-704-386-5687
 

Balius

LoanSafe Member
Feb 8, 2013
4
0
0
Credit score is too high for a HAFA DIL...

I had posted to you in the other thread to contact the executive team, and this would also be a good reason to do that;

Bank of America CEO:

[email protected]<wbr>bankofamerica.com
Direct: 1-704-386-5687
I emailed the OOP and did get a quick response. The reason I was declined a HAFA deed in lieu was because my credit score is too high. So much for trying to keep my payments paid on time by making the mortgage the high priority every month. The conditions of eligibility for HAFA deed in lieu seem to be a big secret. The other reason the representative gave was that many investors are no longer participating in HAFA DIL. My mortgage investor is BONY, I believe they do still participate but the representative did seem vague about this. Then she reaffirmed that the credit score would be enough to deny HAFA DIL eligibility.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
I emailed the OOP and did get a quick response. The reason I was declined a HAFA deed in lieu was because my credit score is too high. So much for trying to keep my payments paid on time by making the mortgage the high priority every month. The conditions of eligibility for HAFA deed in lieu seem to be a big secret. The other reason the representative gave was that many investors are no longer participating in HAFA DIL. My mortgage investor is BONY, I believe they do still participate but the representative did seem vague about this. Then she reaffirmed that the credit score would be enough to deny HAFA DIL eligibility.
The BofA HAFA eligibility matrix can be found here;

http://homeloanhelp.bankofamerica.com/en/assets/documents/HAFA-policies_Bank-of-America.pdf

I am not sure that it will include the answers you are looking for, but it does state;

A deed-in-lieu of foreclosure must be approved by the owner of your loan as well
as any other lien holders, such as your home equity loan or home equity line of
credit lender.
 

Balius

LoanSafe Member
Feb 8, 2013
4
0
0
Yes, you are right Cat. The two processes HAFA SS, and HAFA DIL seem to have separate approvals based on rules that are not always clear. Being rejected because my credit score is too high may be a flag for others going through the process.