The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales or deeds-in-lieu of foreclosure.1 HAFA was announced on November 30, 2009 in a HAMP Update titled Introducing the Home Affordable Foreclosure Alternatives Program.2 HAFA directs lenders to assist eligible homeowners in quickly and effectively implementing short sales or deeds-in-lieu by providing financial incentives to lenders that carry out foreclosure alternatives through the program's guidelines set forth in Supplemental Directive 09-09 Revised (revised March 26, 2010).3 The program was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures. HAFA in its current state is only applicable to conventional-type, non-Governmental Serviced Enterprises (non-GSE) mortgages and therefore does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.4 These organizations may have plans to release their own versions of HAFA
Who is Eligible for HAFA?
Most homeowners facing financial hardship are eligible. As a rule, if a homeowner is eligible for HAMP but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. However, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days if the borrower has met one or more of the following criteria1:
•Does not qualify for a HAMP Trial Period Plan •Does not successfully complete a HAMP Trial Period Plan •Is delinquent on a HAMP modification by missing at least two consecutive payments •Requests a short sale or deed-in-lieu. For a loan to qualify, it must meet the following criteria: •The property is the borrower's principal residence •The mortgage loan is a first lien mortgage originated on or before January 1, 2009 •The mortgage is delinquent or default is reasonably foreseeable •The current unpaid principal balance is equal to or less than $729,750 •The borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross income (as defined in HAMP Supplemental Directive 09-01) •The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac.
My name is Miguel Portales and I am one of the very few Realtors in Northern California that is completely equipped and certified to successfully negotiate with lenders to help homeowners to avoid foreclosure. As a CDPE certified Real Estate Agent, I made my personal goal to “Solve the Foreclosure crisis one homeowner at a time”
Visit the website I created specifically to answer your questions: