Hafa Program

The Making Home Affordable Program

The HAFA program is the government’s new Short Sale/deed-in-lieu program. The government created the program in order to assist home owners who can no longer afford their home and who wanted to avoid the damage a foreclosure does to credit.
In order to qualify for HAFA, a home owner must meet the basic eligibility requirements for HAMP. They are:

The property is the borrower’s principal residence.
The mortgage is a first lien originated before 01/01/09.
The mortgage is delinquent or default is reasonably foreseeable.
The current mortgage balance is $729,750.00 or less.
The borrower’s monthly mortgage payment exceeds 31% of their monthly gross income.
If the borrower has mortgage insurance, the mortgage insurer must waive their rights to collect any deficiency.

If a borrower meets the following criteria, the participating servicer must give the borrower the option to participate in HAFA.

The borrower did not qualify for the HAMP trial period.
The borrower did not successfully complete the HAMP trial period.
The borrower is delinquent on their HAMP modification.
The borrowers request a short sale or deed-in-lieu.

The good news for sellers who participate in HAFA:

The lender is required to forgive any deficiency.
The seller will get $1500.00 at close of escrow.
The short sale will be pre-approved and the listing price will be provided to the listing agent by the loan servicer.
The servicer will provide written approval within 10 days of receipt of an executed purchase contract.
The servicer will pay up to 3% to junior lien holders, but no more than $3000.00.

The good news for buyers:

The endless waiting for short sale approval will be eliminated.
Servicer will allow up to 45 days for close of escrow.

This program will take all the frustrating unknowns out of the short sale process.
The program provided $3000.00 for junior lien holders and requires them to give up their rights to pursue a deficiency. If a junior wants more than $3000.00 or refuses to give up their right to pursue, the borrower may not be able to obtain clear title as required. If there is more than one junior, $3000.00 may not be enough to satisfy them all.

If you need more informartion and would like to speak with one of our Financial Representatives,
call 1 877 544 9735 now!