The Home Affordable Foreclosure Alternatives (HAFA) program was developed to give homeowners a way to settle their mortgage debt without going through a foreclosure.

The goal of this program is to help you sell your home in a short sale and settle your mortgage debt if you owe more on your mortgage than your house is worth and are unable to qualify for a home loan assistance program.

This federal government program streamlines the short sale approval process and offers financial assistance to help you with relocation.On Friday, March 9, the Obama Administration announced updates to the Home Affordable Foreclosure Alternative (HAFA) program. Created in 2009, HAFA is a government-sponsored initiative assisting all Home Affordable Modification Program (HAMP) eligible homeowners in avoiding foreclosure through short sales and deed-in-lieus.

The HAFA updates will go into effect on June 1, 2012, and will allow more distressed homeowners to seek assistance. Most importantly, the deadline for submitting for HAFA eligibility will be extended to December 31, 2016. Other major changes from March’s updates to the HAFA program include:


        • Through HAFA, you can get help with your primary residence or rental property.
        • If a HAFA short sale doesn’t work, you may be able to give the title back to your mortgage company in a HAFA deed-in-lieu of foreclosure (DIL).
        • Once you complete a HAFA short sale or DIL, there is a waiver of deficiency, meaning you are released from any remaining mortgage debt.
        • HAFA offers $10,000 in relocation assistance for you or your tenant.
        • In some cases, HAFA has a less negative effect on your credit score than a foreclosure, which allows for a faster financial recovery.


You may be eligible for HAFA if you meet the following basic criteria:

      • You are struggling to make your mortgage payments due to financial hardship.
      • You are delinquent or in danger of falling behind on your mortgage.
      • You obtained your mortgage on or before January 1, 2009.
      • Your property has not been condemned.
      • You owe up to $729,750 on your primary residence or one-to-four unit rental property (loan limits are higher for two- to four-unit properties).


HAFA Short Sale

Homeowners selling their homes in a HAFA short sale are getting some relief with $10,000 in relocation assistance. But this program will end.