HAFA – Home Affordable Foreclosure Alternatives
Your short sale deficiency must be agreed to be waived as part of HAFA
Financial Incentive in Short Sale for short sellers – $3000.00 – $10000.00 relocation money
1) Loan originated prior to 2009
2) Amount less than $ 729,750.00
3) Borrower signs affidavit – can’t make mortgage payments, has hardship
4) Can get pre-approval on short sale before listing
5) Fully released from mortgage debt – no promisory note, contribution, deficiency
6) If approved for HAFA – after 120 days listed – can get automatic deed in lieu
7) Primary residence only and must be occupied – unless job relocation and no primary residence purchased yet
8) The first lender will throw more money at junior lien holders (second mortgages) – up to $6000.00 rather than the usual $3000.00 given in traditional short sale (but second is under no obligation to comply fyi – and if they refuse to comply the short sale gets taken out of HAFA)
Additional –
1) $1500.00 for servicers to cover administrative and processing costs
2) Up to $2000.00 for investors who allow a total of up to $6000.00 to subordinate lien holders (one for three matching basis)
WHAT YOU CAN DO
*** Your lender is required by law to tell you who owns your loan and if you are eligible for HAFA – Call and ask!
Who participates in HAFA
- not all lenders participate
- FHA, VA, Ginnie Mae do not participate but have similar programs
- If loan is owned by Freddie Mac or Fannie Mae could be eligible for HAFA even if servicer is not
The Law Office of Beth Mann, P.C. 