Well, it stands for Home Affordable Foreclosure Alternatives Program but that doesn’t really give you any details. It’s is a short sale assistance program that the government rolled out April 5, 2010 in order to help homeowners avoid having to go through a foreclosure. There are a lot of details to this program, but a few of the benefits that I’ve heard include:
- Up to $3,000 for Seller to relocate
- Specific communication timeframes that bank and seller must play by. Meaning you get a response from the bank within 2 weeks of submitting purchase offer.
- Borrowers are released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment allowed)
How do you find out if you’re eligible for HAFA?
Straight from MakingHomeAffordable.com:
Mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program. For more information about your options, you should contact your mortgage servicer. If you have questions about the program, or want guidance about how these options may impact your personal situation, you may wish to speak to a HUD-approved housing counselor for free.
Is your loan servicer working with HAFA?
Check this website to see if your Mortgage Servicer is on the list.
HAFA Resources
There is excellent information on the Making Home Affordable website, REALTOR.org has published a HAFA FAQ PDF, and last but not least, here is a 2 minute video produced by CDPE.com explaining more about the program.
So what’s the word from the REALTORS® out there on the streets helping homeowners with short sales? Have you closed deals using the HAFA program?
