CALHFA Short Sale Successfully Closed By Santa Maria Short Sale Agent
I recently closed a short sale with CAL HFA as the lender/servicer. Short sales with CAL HFA are possible, though not that easy. CAL HFA is the down payment assistance program that allows borrowers to purchase property with only a 1% down payment. It works in conjunction with an FHA loan. FHA allows a purchase with as little as 3.5% down payment, and CAL HFA gives down payment assistance of up to 2.5%, allowing the buyer to purchase with as little as a one percent down payment. In return, the property must remain owner occupied, in fact, if you later want to rent out the property you must apply to CAL HFA for the privilege and they evaluate each request on a case by case basis. In addition, CAL HFA records a lien against the property for the amount of the down payment assistance, and that lien must be satisfied when the property is sold. So, CAL-HFA can help get a family into a property, but there are quirks and those quirks extend to their short sales as well.
Most notably, their short sale package indicates that the property must be owner occupied throughout the entire short sale process, and the property must be listed for a minimum of 90 days. Of course, they do make exceptions to these requirements. They require tax returns, pay stubs, and bank account statements. Any short sale package missing more than three items will be returned and the applicant will be asked to reapply. So, it is vital that everything is complete when submitted. The actual processing timeline with CAL HFA was not long. The problem we ran into at the time was the anticipated expiration of the Mortgage Debt Forgiveness Act. Of course, it was extended another year, but at the time it was unknown and that caused a flurry of applications, so we had to wait our turn in line. Once they looked at the file, the processing went quickly and our inquiries were answered promptly.
Before deciding whether a short sale of your home is right for you, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 878-9879.
Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She has successfully completed short sales with Bank of America, Wells Fargo, CHASE , GMAC, Seterus, IndyMac, CitiMortgage, Green Tree Servicing, Specialized Loan Servicing, HomEq Servicing, Wachovia, Coast Hills Federal Credit Union, Select Portfolio Servicing, CAL HFA, Fannie Mae, Freddie Mac, and others.
* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Tni LeBlanc and MInt properties are not affiliated or endorsed by any lender, investor, guarantor or mortgage insurer.
Copyright ©2013 Tni LeBlanc *CALHFA Short Sale Successfully Closed By Santa Maria Short Sale Agent*
