HAFA Short Sale Eligibility Guidelines for Homeowners

To be considered for the Home Affordable Foreclosure Alternative program or HAFA the borrower must meet the following criteria;

1. The borrower has exhausted all modification options and/or has decided to pursue a Short Sale or Deed-in- Lieu of Foreclosure.

2. The property has to be the borrowers principle residence.

3. The first lien was originated prior to 1/1/09.

4. The mortgage is at least 60 days delinquent or at risk for imminent default.

5. Mortgage payment greater than 31% of gross income.

6. The unpaid balance is less than 729,750 for 1 unit properties.

7. The investor that owns the loan must be a HAFA participant.

The difference between a traditional Short Sale and a HAFA Short Sale is HAFA:

1. Won’t allow the investor(bank) to pursue a deficiency judgment against the borrower.
2. Prior to marketing the property the borrower and agent will get the home value the bank will accept.
3. The borrower will receive 3,000 at closing for moving assistance.
4. All documents are submitted upfront instead of after an offer is received on the property.
5. A ten-day response from the bank once an offer is received on the property.
6. If no offer received during the mandatory 120 day marketing period, a Deed-in-Lieu of Foreclosure is automatically considered.

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