WHAT IS HAFA?



HAFA has been termed the "fresh start program"!

In February 2009, the Obama Administration introduced a comprehensive Financial Stability Plan to address some of the key problems of the housing crisis to get our economy back on track. One critical element of that effort is the Making Home Affordable Program, a plan to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure. The Making Home Affordable Fact Sheet can answer many of your questions.

Home Affordable Modification Program ~ One of the programs through Making Home Affordable is HAMP. HAMP is designed to help make your monthly mortgage payment more affordable. There are qualifying criteria, so take the time to read more through these Frequently Asked Questions.

Home Affordable Foreclosure Alternative Program ~ Another program through Making Home Affordable is HAFA. Daphne Nelson is a Certified HAFA Specialist and can help answer any of your questions relating to this program that was implemented on August 5, 2010 and will run through December 31, 2012. Below are the non-GSE (Government Sponsored Enterprises) HAFA guidelines.

Here are some brief highlites of the HAFA progam:

  • HAFA is a part of HAMP. Borrowers who meet HAMP eligibility can say "no" to the loan modification and go straight to HAFA, if eligible. But loan servicers MUST consider borrowers for HAMP and offer HAMP - Home Retention is the 1st priority!
  • The main alternatives under HAFA are a Short Sale and a Deed-in-Lieu
  • HAFA sets standards for the process, timelines & documents required for a Short Sale (no more of the common 4-6 month waiting for lenders to respond!)
  • HAFA allows borrowers to receive a "pre-approved" short sale
  • The borrower will be fully released from any future liability for the debt
  • HAFA provides financial incentives to borrowers, servicers and investors
  • Servicers MUST consider HAFA before sending a loan to foreclosure
  • Borrowers must provide clear & marketable title, maintain the property and cooperate with Listing Agent to market the home

ELIGIBILITY REQUIREMENTS (the program is designed to help homeowners, not investors):

1) The home is your primary residence, or must recently have been your primary residence (certain restrictions apply)

2) Your mortgage is a 1st loan originating prior to January 2009

3) Your mortgage is delinquent or delinquency is "reasonably forseeable"

4) Your unpaid balance is equal to or less than $729,750 (your balance as at today, NOT your original loan amount) for a single family home (or higher for 2-4 units)

5) Borrower must be eligible for, but unable to complete, a loan modification under HAMP

6) Borrower is evaluated based on the lender's own written guidelines

The information above relates to non-GSE (Government Sponsored Enterprises) HAFA guidelines. Please note that Fannie Mae and Freddie Mac announced their HAFA guidelines for implementation on August 1, 2010, which differ in some ways. Click here to see the HAFA Guideline Differences between non-GSE and Fannie & Freddie mortgages.

**Changes and updates to the program are ongoing, so please visit Making Home Affordable often and we will make sure to update this page as often as possible!



A short sale may have credit or legal consequences and may result in taxable income to the Seller. The Seller is advised to seek advice from an attorney, certified public accountant or other expert regarding such potential consequences of a short sale.