HAFA Short Sale

HAFA is a government-subsidized “Home Affordable Foreclosure Alternatives” program for distressed homeowners to sell their homes to avoid foreclosure, even if the sales price is not enough to pay off their existing mortgage loans. Under HAFA, a participating lender will pre-approve the terms of a short sale prior to listing using standard forms and specific timeframes.

Are you worried about Foreclosure?! HAFA may be able to help!

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^SM. The benefit of a HAFA short sale is that you are no longer 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 or deed –in-lieu of foreclosure.

Eligibility*

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.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA.

HAFA Brochures

Benefits of completing a successful HAFA short sale

If the HAFA short sale is successful the Mortgage Lender will pay you $3000 for moving, relocation, or rental expenses.
If the HAFA short sale is successful the Mortgage Lender will not pursue the deficiency balance on your loan.
If the HAFA short sale is successful the Mortgage Lender will not foreclose on your home.

Important information about a HAFA short sale

If you successfully complete a HAFA short sale, you will sell your home and will be required to vacate the property.
You are responsible for all maintenance and expenses on the property until it is sold.
Documentation supporting your financial hardship and inability to afford the payments on the property are required to qualify for a HAFA short sale.
The short sale must be an “arm’s length” transaction. An arm’s length transaction means that you cannot list the property with or sell it to anyone that you are related to or with whom you have a close personal or business relationship.
The Mortgage Lender will use proceeds from the sale to pay off the balance of the loan, and will work together with your listing agent on your behalf to facilitate the sale process.
The Mortgage Lender may begin or continue the foreclosure process while they review your request. The Mortgage Lender will suspend any foreclosure sale date until the expiration date of the signed Acknowledgement of Interest or the date of closing of an approved short sale, whichever is later, as long as you continue to abide by the terms and conditions of the agreement.
If the property is not sold within the 120 day marketing period, you agree to voluntarily transfer the title in a Deed in Lieu of Foreclosure.
We will continue to report your loan to the major credit reporting agencies. When the short sale transaction is completed, we will report that your loan was “paid in full for less than the full balance.”

Click here to see if you are eligible!