ome Affordable Foreclosure Alternatives Program


Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure.

With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe. These options may be available to homeowners who fall under some or most of these criteria:

  1. Have a conventional loan, or a loan backed by Fannie Mae, Freddie Mac, or a private lender participating in HAFA;
  2. The home is or was the principal residence for some time during the last 12 months;
  3. The loan was originated prior to January 1, 2009;
  4. The loan amount is less than $729,750;
  5. Owe more on the loan than the home is worth;
  6. Have no significant assets or cash reserves;
  7. In default, or default is reasonably foreseeable;
  8. Have a financial hardship, as defined by the lender;
  9. Have attempted a loan modification, or feel that they cannot do so.

Short Sale
In a short sale, the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. This option is particularly attractive for homeowners who wish to reduce the impact on their credit record and may want to re-enter the housing market to buy a home again in the next few years. 

Deed-in-Lieu of Foreclosure
Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a deed-in-lieu of foreclosure. With a deed-in-lieu, the borrower voluntarily transfers ownership of the property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances.

The HAFA Program streamlines both of these options to make them easier for a homeowner to work with their servicer. Under the program, a homeowner can receive $10,000 to help with relocation costs.

If you can no longer afford to remain in your home, or if you need to move, a HAFA short sale may be your best option to get out from under an unaffordable mortgage and minimize the impact on your credit. Click here to contact us. We'll be happy to visit with you to discuss your situation and review your options. There's absolutely no cost or obligation.

Download a HAFA Consumer Brochure

Download a HAFA Education Guide

Download the Information Handout For Sellers

Does your lender participate in HAFA? CLICK HERE to find out!

HAFA Win Win Solution Started April 2010

  Foreclosure vs Short Sale: Your Credit Score