HAFA stands for "Home Affordable Foreclosure Alternatives".
HAFA is a program designed to provide incentives for borrowers doing a short sale (or a deed in lieu) in order to avoid foreclosure. Servicers who participated in the HAMP (Home Affordable Mortgage Program) are required to participate in the HAFA program. For the other servicers, it’s voluntary. A list of all the servicers participating in the HAMP program can be found at the Making Home Affordable WEBSITE. For loans owned or guaranteed by Fannie Mae or Freddie Mac, some modified HAFA guidelines will be coming out soon.
•Designed to work with the HAMP program (modifications), and is designed
for those borrowers otherwise eligible for HAMP assistance, but nevertheless,
unable to keep their homes.
•Asks lenders to use the borrower financial and hardship packets submitted
for the loan modification in consideration of a short sale option.
•Is supposed to give homeowners pre-approved short sale terms prior to listing
the property (this should include the minimum net proceeds they’ll accept).
•Will require that lenders fully release borrowers from any future liability
(on first loans only). This means no note, cash at close or future deficiency
judgements will be allowed.
•Can provide some financial incentives for homeowners participating in the
HAFA program for short sales including up to $3,000 for relocation expenses.
This program is not as easy as it sounds. It's a very complex program that requires 43 pages of forms and guidelines and depends on the borrowers motivation and cooperation.
David Simpson
Certified Distressed Property Expert, CDPE
RE/MAX Associates
4285 N. Shiloh Drive, Suite 205 - Fayetteville AR 72703
Cell: (479) 200-9914
Office: (479) 684-5757
Fax: (479) 684-5755
www.shortsalenorthwestarkansas.com
www.nwarkansashomesforsale.com
David Simpson with RE/MAX Associates in Fayetteville Arkansas is one of the few agents with the Certified Distressed Property Expert® (CDPE®) designation in Northwest Arkansas. He has helped many homeowners avoid foreclosure by selling their homes through a short sale. He has homes listed all over Northwest Arkansas including the Fayetteville, Springdale, Rogers, Bentonville and Bella Vista areas.
This site, David Simpson or RE/MAX Associates, LLC is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.