Quick Facts on HAFA

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)



***  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

  1. not all lenders participate
  2. FHA, VA, Ginnie Mae do not participate but have similar programs
  3. If loan is owned by Freddie Mac or Fannie Mae could be eligible for HAFA even if servicer is not

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