What is HAFA?
The Home Affordable Foreclosure Alternatives (HAFA) Program is the latest government-sponsored initiative to help people facing foreclosure. Overseen by the US Treasury Department and administered by Fannie Mae, HAFA assists eligible homeowners in avoiding foreclosure through short sales or deeds-in-lieu of foreclosure. A deed-in-lieu of foreclosure is when the homeowner voluntarily turns his home over to the lender to avoid foreclosure.
HAFA offers financial incentives to lenders, borrowers, and junior lien holders that successful implement the program’s foreclosure alternatives. Homeowners can receive up to $3,000 of relocation funds in a successful short sale. HAFA was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures.
To qualify for the HAFA program, the following criteria must be met:
· The property is the borrower's principal residence.
· The mortgage loan is a first lien mortgage originated on or before January 1, 2009.
· The mortgage is delinquent or default is reasonably foreseeable.
· The current unpaid principal balance is equal to or less than $729,750.
· The borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross income.
· The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac.
Learn more about foreclosure, short sales and the HAFA program at TheHomeSaverGuys.com.