Avoiding Foreclosure Help
The HAFA Program


Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure. With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe.

The Most Important Thing Is To
Realize That You Have Options
And Not Give Up Hope!

Under HAFA, borrowers receive preapproved short sale terms from the lender prior to putting the home on the market.

To be eligible for HAFA, homeowners must first apply for a loan modification through the Home Affordable Modification Program, or HAMP.

Other HAFA Requirements Include:

  • Property Is Principal Residence.

  • Mortgage Originated Before Jan. 1, 2009.

  • Mortgage Is Owned Or Guaranteed By Fannie Mae Or Freddie Mac.

  • Borrower Is Delinquent Or Default Is Foreseeable.

  • Homeowner Demonstrates Hardship.

  • Borrower's Total Monthly Housing Payment Exceeds 31 Percent Of Gross Income.

  • Unpaid principal does not exceed $729,750.

According to HAFA rules, lenders now must offer a short sale in writing to the borrower within 30 days if the borrower does not qualify for or complete a loan modification. Borrowers then must respond within 14 days to the lender's short sale agreement.

When a purchase offer is made, borrowers must submit the sales contract to the lender within three days, along with the buyers' mortgage preapproval and the status of negotiations with other lien holders on the seller's property. Finally, lenders must approve or deny the contract within 10 days.

HAFA rules also state that lenders must release borrowers from the obligation to repay the difference between the sales price and the loan amount. No deficiency judgments are allowed for a first or second loan.

HAFA's financial incentives include a payment of up to $3,000 for second mortgage holders. Typically, holders of second loans are owed much more. But if the property goes to foreclosure, the second trust holder is not likely to get any money at all.

Other HAFA financial incentives include $1,000 to loan servicers to cover administrative fees, up to $1,000 for mortgage investors who agree to share short sale proceeds with second lien holders and $1,500 to the homeowners for relocation

To Find Out More or Get Help You Can:

  1. Fill out our Avoid Foreclosure Help Inquiry Form
  2. Call us at 508-348-1435 for a free 1/2 consultation.
  3. Download our Respresentation Agreement, sign and return to us.

To learn more about Avoiding Foreclosure click on one of the links below:

Avoid Foreclosure Help

Avoid Foreclosure Help Inquiry Form

Avoiding Foreclosure Help: The Home Affordable Foreclosure Alternative Program

Avoiding Foreclosure Help: Deed in Lieu of Foreclosure

Avoid Foreclosure News

Avoid Foreclosure Relief - Small Steps Can Make a Big Difference

Understanding Robo-Signing, Part I

Understanding Robo-Signing, Part II

Understanding Robo-Signing, Part III

All Things Loan Modification

Loan Modification: How It Works

Loan Modification Under HAMP, Part I

Loan Modification Under HAMP, Part II

Loan Modification Under HARP, Part I

Loan Modification Under HARP, Part II

Loan Modification Our Services

Loan Modification Respresentation Agreement

Your Debt to Income Ratio Calculator

Short Sale Help, Part I

Short Sale Help, Part II

Short Sale Help, Part III

Short Sales Help FAQ, Part I

Short Sales Help FAQ, Part II

Short Sales Help FAQ, Part III

Short Sales: Our Services

For more information about other conflict resolution topics, click on any of the links below.

Aging Parents and Conflict Resolution

All Things ADR

All Things Arbitration

All Things Avoiding Foreclosure

All Things Conflict Resolution

About Us page.

Collaborative Divorce page.

All Things Mediation.

All Things Negotiation

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