What is the HAFA Program and
How Does it work with Short Sales?

Short Sales continue to be a major component of the real estate marketplace. The HAFA program can help some short sellers make a fresh start after a short sale.

The HAFA program (Home affordable Foreclosure Alternatives) is a government-sponsored program that allows homeowners who are short selling to receive $3000 in relocation assistance, have their total mortgage debt forgiven and requires that participating lenders waive all future claims against homeowners. For a successful HAFA short sale, it’s best to hire a Attorney and must hire a Realtor.

Once you locate your Realtor, you should discuss the HAFA program and the eligibility guidelines at your listing appointment. The HAFA program requires the Realtor to submit the homeowner’s paperwork in a very specific and time-sensitive manner, so if you would like to be considered for the program it’s important to determine your eligibility with your Realtor.

To Be “Eligible” for the HAFA Program the Borrower MUST….

  1. Live in the property and it must be the borrower’s primary residence.
  2. Have a mortgage loan that is a first lien mortgage was that originated on or before January 1, 2009
  3. Be delinquent on the mortgage or default is reasonably foreseeable.
  4. The current unpaid balance is equal to or less than $729,750 for one single family home

It is also important to understand that “eligibility” does not mean that you will be approved for the HAFA program. It simply means you are eligible to be considered. Each file is reviewed individually based on lender and investor guidelines.

Not all lenders participate in HAFA. If your lender (your 1st lien holder) does not participate in HAFA you cannot be considered for the program. However, you can complete a regular short sale. Your Realtor or Attorney can negotiate to have future claims waived, but in a regular short sale the borrower is not allowed received any money from the sale of the home.