What is HAFA?

  • The Home Affordable Foreclosure Alternatives Program, known as HAFA, is designed to help owners (referred to below as borrowers) who are unable to retain their home under the Home Affordable Modification Program (HAMP). While the first priority is to keep families in their homes, where this is not possible with a loan modification, they may be able to avoid foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL) under HAFA.
  •  The Treasury Department guidelines and forms for HAFA, updated on March 26, 2010, do not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac. Those enterprises will issue their own HAFA guidance and forms. FHA and VA are not participating in HAFA, because they have their own short sales program.

Who is Eligible?

The borrower must meet the basic eligibility criteria for HAMP:

  • Principal residence. The property may be vacant up to 90 days before the date of the Short Sale Agreement (SAA), Alternative Request for Approval of Short Sale, or DIL but only if the borrower documents they were required to relocate at least 100 miles from their home for purposes of employment and they have not purchased another property in the 90 day period.
  • First lien originated before 2009.
  • Mortgage delinquent or default is reasonably foreseeable.
  • Unpaid principal balance no more than $729,750 (higher limits for 2 to 4 unit dwellings).
  • Borrower’s total monthly payment exceeds 31% of gross income.

To find out if you qualify, and if your loan provider is participating in the HAFA program, please contact us at 425-413-6428 or info@HappyHomeTeam.com

The program just began on April 5, 2010 so a lot of the details have not been fully ironed out yet and there are a lot of moving parts to this program so it is imperative that you contact us right away.