What is HAFA?

“HAFA” or Home Affordable Foreclosure Alternatives

This government-assisted program provides loan servicers, loan investors, and distressed Borrowers with two alternatives to foreclosure: Short Sale or Deed-in-lieu (DIL). HAFA is designed to address many of the common problems with traditional (non HAFA) short sales so distressed borrowers can gain a “fresh start” from their previous mortgage debt.

HAFA offers homeowners an opportunity to avoid the negative impacts and possible liabilities associated with foreclosure, conventional short sales, and DILs such as deficiency judgments and promissory notes.

Different from conventional short sale or deed-in-lieu, over 2300 servicers – including all Fannie Mae and Freddie Mac servicers – are participating in the program. By doing so they are monetarily incentivized to complete a HAFA short or deed-in-lieu and given additional funds to help pay off subordinate liens such as loans or even HOA fees.

Other positive attributes may include,

  • No Promissory Notes or funds required at close from the      Borrower (i.e., seller)
  • No Deficiency Judgments
  • Permanent relief of all future liabilities associated      with the loan from the Lender or Servicer
  • Mandatory Foreclosure Postponement
  • Gives Borrower a min of 120 days and max of 360 days to      sell the home
  • Gives Borrower an upfront release value to sell the      home
  • 10 business day approvals once a contract has been      submitted for a approval
  • Gives Borrower $3000 dollars at close for relocation      expenses
  • Decrease Borrowers time to re-establish credit and get      a second chance at homeownership more quickly

The Making Home Affordable (MHA) Program also includes other Borrower friendly alternatives to foreclosure as seen below. You should contact your HAFA Specialist today to get a full consultation as to your options.

HAMP (Home Affordable Modification Program)

Homeowners suffering from some sort of financial hardship, struggling to make their monthly mortgage payments and would like an opportunity at home retention before a foreclosure alternative can request the HAMP modification and may provide qualified homeowners with more affordable mortgage payments.

2MP (Second Lien Modification Program)

The Second Lien Modification Program may offer homeowners a way to lower payments on their second mortgage when their first mortgage is modified under the Home Affordable Modification Program.

HARP (Home Affordable Refinance Program)

Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates. A Home Affordable Refinance may help many of these homeowners who otherwise would be unable to refinance and whose loans are held by Fannie Mae or Freddie Mac refinance into a more affordable or more stable mortgage.

UP (Unemployment Program)

As a result of the continued economic decline many homeowners are still continuing to lose their jobs. This Program assists those homeowners with partial or full monthly mortgage payment relief for a given period until that borrower can secure another job or income to make their payments and avoid default.


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