If you have heard that traditional short sales are difficult, I hope you never have any friends going through a Freddie Mac HAFA short sale.
The only reason I can think of as to why they are so complicated and tricky is because Freddie Mac is basically owned by the government, and a HAFA short sale is a government program. You combine a government-sponsored entity with a government-based program and, well, it reminds me of a Ronald Reagan quip that always got a chuckle: "I'm from the government, and I'm here to help" . . . read more about a Freddie Mac HAFA Short Sale.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
We are patiently waiting approval to buy a home short sale. We are not certain the owner of the home can fully prove financial hardship as he walked away from this home a year ago and lives 2hours away. The home we are trying to purchase has not been paid on in over a year and the longer it sits empty the worse it gets. We submitted our offer almost 6 weeks ago the first bank approved waiting for freddie Mac now. We looked at the house again and noticed mold growing in basement…the realtor is doing best he can emptying the dehumidifier when he can (we’ve had extremely wet weather). Our offer was 50,000 less than what the sale price is and what is owed on house…that would be the loss they would have to take…what are the odds we get this house and how long from Freddie Mac do we wait before backing out?? This house is great but depleting in value by the day…in our area our offer is rightfully so and the house is worth maybe just a hair more than what we are offering…we must be out of our house in 3 weeks and I guess we’ll rent till approval…if if if we ever get it?! Comments thoughts please!
Freddie Mac is the last approval — first your short sale needs to be approved by the bank. Freddie Mac is not the bank. However, if the owner is trying to do a HAFA Freddie Mac, it’s not a residence so he won’t qualify and you can’t submit an offer on a HAFA Freddie Mac; it will get kicked back. You might never get approval.
You’ll have more luck if it’s a regular Freddie Mac short sale. It all depends on the type of short sale and the short sale lender. Who is the bank? It’s the bank that says yay or nay before sending the file to Freddie Mac. If it’s Bank of America, for example, you’re looking at 8 to 12 weeks for approval, and then add another 10 days for Freddie Mac. Minimum. If it’s Chase, maybe by Christmas.
The bank doesn’t care about mold in the basement. Short sales are sold “as is.”
Thank you for feedback/comment. The bank gave a yey and sent it on to Freddie. All we hear is it could be tomorrow it could be in six months… Frustrating not knowing where our little paper lies in the Freddie offices..in hear patience is key. Yet it’s mentally draining
Usually Freddie Mac gives a turnaround in 10 to 14 business days. There could be something else holding it up. Is there mortgage insurance? If so, the MI needs to approve. MI can be a royal PITA.
That I do not know but will certainly find out! Thanks!!
If Freddie Mac approves a short sale….is it a long closing or nice and sweet?
Once approved by Freddie Mac, the short sale lender typically gives 30 to 45 days to close.