Tuesday, August 28th, 2012

Homes Affordable Foreclosure Alternatives – HAFA

If you are in a hardship and are looking for information on short selling your home, it is probably time you worked toward more affordable housing, such as the Home Affordable Foreclosure Alternative (HAFA).  The HAFA program provides homeowners two options.  First is the Deed In Lieu of foreclosure.  Second is the preferred process called the Short Sale.  A short sale is when the lender agrees for you to sell your home for an amount that is less than what you owe on your balance.

Here are some HAFA Short Sale Benefits:

  • HAFA releases you entirely from your mortgage debt upon closing or selling the property.  The deficiency from what you owe and the amount you actually sell the house for is guaranteed to be waived by the lender and servicer.  The lender will not pursue any assets you have including checking, savings, vehicles, etc…
  • Your mortgage company works with you and your real estate agent to determine acceptable selling terms.  The lender will require you to have a realtor and an executed listing agreement for your home.
  • HAFA has a far less negative impact on your credit than a foreclosure.
  • HAFA provides $3,000 in relocation assistance at closing to you.


  • You live in the home or have lived in the home in the last 12 months.
  • You must have a legitimate and documented hardship.
  • You have not purchased a new house in 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 of a felony larceny, theft, fraud, forgery, money laundering, tax evasion in connection with a mortgage or real estate transaction.

HAFA is only available for mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac, or serviced by a HAMP participating mortgage servicer.

Be sure to speak to a real estate professional knowledgable in short sales who can assist in providing you guidance into the best short sale or disposition process.

Scott Allan, with New Jersey Real Estate Guys is a seasoned short sale specialist with dozens of short sale clients.  Please call me at 877-688-7582 or e-mail me at Scott@NewJerseyRealEstateGuys.com.  I would be happy to help you with any questions you have regarding the short sale.

Some of the information in this article was taken from Making Homes Affordable, a website from the Department of Treasury and the U.S Department of Housing offering information on HAFA.  If you would like to view the HAFA page, please visit Making Homes Affordable

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