What is the Home Affordable Foreclosure Alternatives Program

HAFA, or better know as Home Affordable Foreclosure Alternatives Program was developed to help homeowners settle their mortgage debt without having to go through the foreclosure process all while saving a little dignity and their credit ratings.

The goal of the HAFA or Home Affordable Foreclosure Alternative program is to help homeowners sell their home by way of a Short Sale and a way to settle your mortgage when homeowners owe more than the home is worth in the current market and when you are unable to get additional loan assistance.

This federal government program streamlines the short sale process and offers financial assistance for relocation.

Who Qualifies?

You may be eligible for the Home Affordable Foreclosure Alternatives program if:

the property is your current principal residence, OR the property has been vacant or rented out for less than 12 months, and you have not bought another principal residence during that time.
the amount you owe on your first mortgage for your property is equal to or less than:

$729,750 for 1 unit
$934,200 for 2 units
$1,129,250 for 3 units
$1,403,400 for 4 units
you owe more on your home than it’s worth
your current mortgage was taken out on or before January 1, 2009

you are experiencing a hardship (such as a job loss, divorce or medical emergency) and are unable to afford your current home loanWill this program affect my credit?

While a short salewill still have a negative effect on your credit, it generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter. As a result, your credit may improve faster. If a short sale is completed on your property, we will report that your loan was “paid in full for less than the full balance.”You should only consider a short sale after you’ve explored all other options, including modifying your loan. Please visit our Loan Assistance Solutions page for a complete list of options you may want to consider.You should contact a tax professional to gain an understanding of any tax implications.What If you are not eligible for HAFA?

If you are not able to meet the requirements for the Home Affordable Foreclosure Alternatives program find a local real estate agent in your area that is knowledgeable about the short sale process and list your property for sale with the real estate and his firm and once you get an offer you can start the short sale process by calling 1-866-880-1232 to start a short sale.