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About HAFA

HAFA is a government-subsidized Home Affordable Foreclosure Prevention Alternatives program for distressed homeowners allowing them to sell their homes for less than what they owe to their lender: in order to avoid foreclosure, even if the sales price is not enough to pay off their existing mortgage loans.

Under HAFA, a participating lender will pre-approve the terms of a short sale and give the borrower at least 4 months to market and sell the property using a licensed real estate professional. HAFA is supposed to help sellers (qualified under the HAFA Eligibility Criteria) , buyers, listing- and selling agents, to participate in a much less excruciating short sale process with streamlined closing procedures, through standardized documentation, and pre-determined and more definite time frames for all parties to abide and benefit from. It also has distinct financial advantages to the seller in particular, since there is a $3,000.00 “moving expense” available to the buyer, but most importantly there is a Mandatory Deficiency Release that allows borrowers to walk away free and clear.

To learn more about the Home Affordable Foreclosure Prevention Alternatives, just click on this video link:

Your Gracefull Exit

To learn more about the Home Affordable Foreclosure Prevention Alternatives approval, just click on this link:

Hafa Sample Forms

To find out if yourmortgage is owned by Fannie Mae or Freddie Mac, just click on the links below:

Fannie Mae Lookup Tool

Freddie Mac Lookup Tool

BORROWER FREQUENTLY ASKED QUESTIONS

The Making Home Affordable Program is part of the Obama Administration's broad, comprehensive strategy to get the economy and the housing market back on track. The Making Home Affordable Program offers strong options for homeowners:

(1) Refinancing mortgage loans through the Home Affordable Refinance Program (HARP),

(2) Modifying first and second mortgage loans through the Home Affordable Modification Program (HAMP) and the Second Lien Modification Program (2MP),

(3) Providing temporary assistance to unemployed homeowners through the Home Affordable Unemployment Program (UP), and

(4) Offering other alternatives to foreclosure through the Home Affordable Foreclosure Prevention Alternatives Program (HAFA).

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Frequently Asked Questions

Program HAFA Short Sales Fact Sheet

What is HAFA?	HAFA is a government-subsidized Home Affordable Foreclosure Prevention Alternatives program for distressed homeowners to sell their homes to avoid foreclosure, even if the sales price is not enough to pay off their existing mortgage loans. Under HAFA, a participating lender will pre-approve the terms of a short sale and give the borrower at least 4 months to market and sell the property using a licensed real estate professional.
Eligibility	The eligibility requirements for a HAFA short sale include the following: Property must be borrower’s principal residence; Loan must be a first trust deed originated before 2009; Loan must be delinquent or default must be reasonably foreseeable; Current unpaid principal balance must be $729,750 or less for single-family home (or higher amounts for 2-to-4 units); and Borrower must be eligible for, but unable to complete, a loan modification under the Home Affordable Modification Program (HAMP).
Financial Incentives	The government incentives under HAFA are as follows: $3,000 to borrower for relocation expenses; $1,500 to servicer for each successful short sale; and $1 to investor for every $2 paid to extinguish junior liens, up to $2,000 maximum, not to exceed 6% of unpaid balance.
Effective Dates	April 5, 2010 to Dec. 31, 2012.
HAFA Procedures	The general standardized procedures for HAFA short sales are as follows: Step 1: Lender evaluates borrower for a loan modification under HAMP. Step 2: Lender evaluates borrower unable to complete HAMP modification for short sale. Step 3: Lender issues Short Sale Agreement (HAFA SSA). Step 4: Borrower lists the property for sale using a licensed real estate agent. Step 5: Borrower and agent market and sell the property. Step 6: Borrower submits to lender a Request for Approval of Short Sale (RASS). Step 7: Lender approves RASS within 10 business days. Step 8: Sale closes escrow.
Lender's Evaluation	Each participating lender will have its own written policy for approving or rejecting a HAFA short sale, based on factors such as the severity of the loss, market conditions, the borrower’s motivation and cooperation, property valuation, and title review.
Short Sale Agreement (HAFA SSA)	The Short Sale Agreement (HAFA SSA) will include, among other things, the following: Either a list price or net proceeds acceptable to the lender; An agreement to fully release borrower from all liability for repayment of the loan; An agreement not to complete a foreclosure sale if borrower complies with SSA; Amount of acceptable closing costs and up to 6% real estate commission. Notice that the sale must be an arm’s length transaction; and Notice that the buyer must agree not to resell the property within 90 days of closing.
Tax, Credit, and Other Consequences	A HAFA short sale may have serious tax, credit, financial, legal, and other consequences. A homeowner is strongly encouraged to seek the advice of a qualified professional regarding these consequences.
Participating Lenders	A list of lenders participating in the HAMP program is available at: HAFA Participating Lenders Fannie Mae and Freddie Mac have their own HAFA guidelines for their loans.
More Information	Fannie/Freddie Guidelines Guidelines

Fannie Mae or Freddie Mac HAFA Guidelines

Fannie May and Freddie Mac have their own HAFA guidelines for their loans and on June 1, 2010, Fannie Mae and Freddie Mac each released guidelines for implementing the Treasury Department's Home Affordable Foreclosure Prevention Alternatives Program (HAFA). These new guidelines apply instead of the HAFA guidelines for non-GSE mortgages. Servicers are required to implement these policies no later than August 1, 2010. While largely consistent with the HAFA guidelines for non-GSE mortgages, Fannie and Freddie have each made some important differences.

To be eligible under the non-GSE HAFA program:

The borrower must be delinquent or default must be reasonably foreseeable:

1.1 Under Freddie's guidelines, a borrower must be more than 60 days delinquent and have cash reserves less than the greater of $5,000.00 or three times the current monthly mortgage payment.

1.2 Fannie allows borrowers to be at imminent risk of default.

Fannie also prohibits a borrower from participating in HAFA if the borrower:

2.1 has the ability to continue making the mortgage payments, but chooses not to do so (sometimes called strategic default);

2.2 has substantial unencumbered assets or significant cash reserves equal to or exceeding three times the borrower's total monthly mortgage payment or $5,000, whichever is greater; or

2.3 has high surplus income.

Fannie and Freddie provide that the real estate commission is the amount in the listing agreement, but not more than 6 percent.
Fannie and Freddie allow for servicer incentives of $2,200 for a short sale and $1,500 for a deed-in-lieu of foreclosure (DIL). This is in contrast to the $1,500 servicer incentive for both a short sale and a DIL for non-GSE mortgages.
For both Fannie and Freddie, each subordinate lien holder in order of priority may be paid no more than 6% of the unpaid principal balance of its loan, until the $6,000 cap is attained. This policy remains unchanged from the non-GSE HAFA program.
Fannie and Freddie guidelines do not permit subordinate lien holders to require contributions from the real estate agent or borrower as a condition for releasing its lien and releasing the borrower from personal liability, which is consistent with the non-GSE HAFA program,

For complete guidelines regarding Fannie and Freddie’s HAFA program please click on the following links:

Fannie Mae Hafa Guidelines

Freddie Mac HAFA Guidelines

Full Application for Loan Work Out

Please complete this application to enable us to assist you with the
options available to you as a distressed home owner.
Simply fill out the information below: with no obligation and
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requested information.
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Home Owner's Personal Information

*Name:
*Email:
Cell phone :
Phone:
Work phone:
*Preferred phone:
Fax:
*Home Address:
How long have you lived here (years):
If less then 2 yrs please provide previous address:
If less then 2 yrs please provide previous address:
Subject property address (if different):
Mailing address (if different):
Best time to contact:
Preferred means of contact: phone or email :
Social Security (Last 4 Digits):
Date of birth:

Employment Information Borrower

*Are you employed (Y/N):
*Are you self employed (Y/N):
*Job Title:
*Years on job:
*Name of employer:
Type of industry:
Work address:
Work phone:
Years on the job (please specify years):
Gross monthly income from job:
Other income (describe source):
Gross monthly other income:
Unemployment income:
Disability income:
SS income:

Co-Borrower Information

Name:
Email:
Preferred phone:
Social Security (Last 4 Digits):
Date of birth:

Employment Information Co-Borrower

Are you employed (Y/N):
Are you self employed (Y/N):
Job Title:
Years on job:
Name of employer:
Type of industry:
Work address:
Work phone:
Years on the job (please specify years):
Gross monthly income from job:
Other income (describe source):
Gross monthly other income:
Unemployment income:
Disability income:
SS income:

Existing Loan Information (First Mortgage)

First mortgage lender (name):
Loan number:
Loan amount (Mtg balance):
Mtg type: (Fixed/ARM/Int Only/Option ARM):
Interest rate:
Monthly payment:
Property tax:
HOA fee:
Hazard insurance:
Impound account (Yes or No):

Existing Loan Information (Second Mortgage)

Second mortgage lender (name):
Loan number:
Loan amount (Mtg balance):
Monthly payment:

Property History

Subject property address:
Property is vacant (Y/N):
Property is Owner or Tenant Occupied (describe):
Date property purchased:
Purchase price:
Down payment:
Estimated property value:
First Loan amount:
Second loan amount:
Did you refinance:
Date of refinance:
Refinance first lender (Name):
Loan amount (1st loan):
Refinance second lender (Name):
Loan amount (2nd loan) :

Derogatory Information and Foreclosure Status

Are you delinquant (1st Mtg):
Number of missed payment (1st Mtg):
Are you delinquant (2nd Mtg):
Number of missed payments (2nd Mtg):
Other lien amounts?:
Has an NOD (Notice of Default) been filed?:
Date of NOD:
Has a NTS (Notice of Trustee Sale) been filed?:
Date of NTS:
Is the property involved in a bankruptcy?:
Amount of unpaid property taxes:
Is the property currently listed for sale?:
Name of listing agent :
Listing agents contact information:
How many other properties do you own:
Are you behind on any of the other properties:
Do you want to keep your home?:
Can you afford the payment(s) now?:
How much can you afford (mortgage payment only):
Was your loan a purchase or refinance:
If a re-financed loan: cash out or rate and term?:
Total credit card debt:
Total other unsecured debt:
Money saved since last mortgage payment:
Have you been approved/denied a previous agreement:
Was it a forbearance agreement:

Specify The Exact Nature of Your Interest

New Field:
*Briefly describe the nature of your hardship:
*Do you need a Loan Modification? (Specify):
*Credit repair & restoration? (Specify):
*Do you need a Short Sale? (Specify):
*Representation to buy a distressed property? :
*Listing your distressed property?:
*Consult on any other options? (Specify):

Note: Fields with an * are required

With the right help, virtually any foreclosure situation can be successfully resolved. We have helped thousands of homeowners and we can help you too. When facing foreclosure Time is of the Essence. You MUST act fast to protect your rights and stop foreclosure. Many people who need foreclosure assistance simply do nothing and hope for a miracle. Don't fall into that trap!