I received this today from one of my investment groups. Does anyone have an Opt-Out Form that they've been using on their Short Sale deals?
Before you attempt another short sale deal, there is a critical new piece of paperwork you MUST have signed by the homeowner and include with the short sale package.
A HAFA opt-out form.
Recently, investors have been getting through the short sale process, only to have the bank say that before they accept their offer, they want to see if the homeowner qualifies for HAFA. The bank wants to do this because if they can get rid of the house through HAFA, they get some compensation from the government.
A little known part of the HAFA program is that it forces the homeowner to sign a deed-in-lieu in the beginning of the process, and then gives the bank 4 months (or more depending on market conditions) to try to sell it. If they can’t get it sold, the bank can just take the house back with the deed-in-lieu.
This form not only opts them out of that onerous program, but also protects you by serving as a notice to the homeowner that that program exists. That way they can’t claim that they were unaware of the program when they agreed to work with you.
This opt-out form is absolutely critical for doing short sales in today’s real estate market. Don’t do a deal without one!
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