HAFA INFO     

Home Affordable Foreclosure Alternatives Program (HAFA)

The Home Affordable Foreclosure Alternatives (HAFA) Program provides homeowners options to avoid costly foreclosures as well as incentives to borrowers who utilize a short sale to avoid foreclosures.

You may be eligible for HAFA if you meet all of the following criteria:

  • You live in the home or have lived there within the last 12 months.
  • You have a documented financial hardship.
  • You have not purchased a new house within the last 12 months.
  • Your first mortgage is less than $729,750.
  • You obtained your mortgage on or before January 1, 2009.
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA.

 

HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or Deed in lieu.

In a HAFA short sale, a homeowner is allowed to list and sell their property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage, and the deficiency will be forgiven.

With the HAFA Short Sale, you will not be asked for a cash contribution or promissory note, and your lender will forfeit their ability to pursue a deficiency judgment against You. A pre-approved HAFA Short Sale is simpler and faster than a regular Short Sale.

To read more about current guidelines for the HAFA program CLICK HERE and look for the borrower forms tab.