HAFA Short Sale Quick Facts

Home Affordable Foreclosure Alternatives (HAFA) Program

If your mortgage payment is unaffordable and you are interested in transitioning to more affordable housing, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA. one of the benefits of a HAFA short sale is that it requires your lender accept the short sale as full settlement of your debt- meaning you cannot later be held responsible for the difference between what you owe on your mortgage and the amount that your home sells for. You will also receive $3,000 in relocation assistance upon successful closing of your short sale.  Perhaps the most exciting benefit of a HAFA short sale is that you can apply for a pre-approved short sale before even putting your home on the market- making your property much more appealing to buyers and your transaction much simpler to close in a timely manner.

In a short sale, the servicer allows you to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. With a deed-in-lieu of foreclosure, you voluntarily transfer ownership of your property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances. Generally, if you make a good faith effort to sell your property but are not successful, a servicer may consider a deed-in-lieu of foreclosure.


You may be eligible to apply if you meet all of the following:

  • You live in the home or have lived there in the last 12 months.
  • You have a documented financial hardship.
  • You have not purchased a new house within the last 12 months.
  • Your first mortgage is less than $729,750.
  • You obtained your mortgage on or before January 1, 2009.
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

It’s important to note that while the government has created this program, it cannot mandate that third party financial institutions or investors be forced to accept a short sale under its guidelines.  Fannie Mae and Freddie Mac are participating lenders- meaning they will accept a HAFA short sale.  It is in your best interest for your Realtor to assist you in researching your investors to ensure that your loan’s investors are willing to participate in the HAFA Program before going through the application process.

If you have any questions about whether or not you may be able to benefit from HAFA, feel free to call me and arrange a meeting for us to go over your unique financial situation.  From the first time home buyer to the savvy investor – from the seller with equity to the seller underwater and needing options – I am here for you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s