The Home Affordable Foreclosure Alternatives (HAFA) initiative is a component of the Making Home Affordable Program (MHA). Many distressed homeowners have heard about the HAFA program and would like to take advantage of it but do not know exactly where to start. The HAFA program offers additional options to eligible borrowers who applied for but did not qualify for or complete a permanent modification under the Home Affordable Modification program (HAMP) or another home retention option to avoid foreclosure. HAFA solutions help stabilize communities by limiting foreclosures in surrounding neighborhoods and allow affected borrowers to transition into more affordable housing. The HAFA program expires on December 31, 2012.
- First-lien mortgages, owned, guaranteed, or securitized by Freddie Mac that were originated on or before January 1, 2009.
- Eligible properties are single-family 1-4 unit primary residences, including condos, Guide-eligible manufactured homes, and negotiated conforming jumbos.
- Mortgaged property is not abandoned, condemned, or vacant (without an applicable exception).
Borrowers may be eligible for HAFA if they meet the following requirements:
- Mandatory for first-lien mortgages owned, guaranteed, or securitized by Freddie Mac that were originated on or before January 1, 2009.
- Eligible properties are single-family 1-4 unit primary residences, including condos, Single-Family Seller/Servicer Guide (Guide)-eligible manufactured homes, and negotiated conforming jumbos.
- Servicers must verify that the borrower is occupying the property as a primary residence, and it is not abandoned, condemned, or vacant (without an applicable exception).
- Borrowers must meet the basic eligibility criteria for HAMP, but not qualify for or complete a HAMP modification or other Freddie Mac home retention solutions.
- Borrowers must be more than 60 days delinquent and have cash reserves less than the greater of $5,000 or three times their current monthly mortgage payment.
- Borrowers who may be in foreclosure, in pending litigation involving the mortgage, or who are in active bankruptcy may be eligible for this initiative.
- Borrowers must be able to convey a clear, marketable title to the mortgaged property.
Short sale or DIL – $3,000 to assist with relocation expenses
In most circumstances, the borrower will receive funds at closing of a short sale or within 5 days after the servicer’s acceptance of a DIL, provided the borrower has vacated the property and left it in acceptable condition.
Contact us if you own a home and are considering a short sale or have questions about the HAFA program and how it can help you.