HAFA stands for Home Affordable Foreclosure Alternatives Program

If your mortgage payment is unaffordable and you are interested in transitioning to more affordable housing, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA.   This program took effect April 5, 2010.   The benefit of a HAFA short sale is that you are no longer responsible for the difference between what you owe on your mortgage and the amount that your home sells for.   You would also receive $3,000 in relocation assistance upon successful closing of your short sale.

Eligibility-  You may be eligible to apply if you meet all of the following:

  • You live in the home or have lived there in the last 12 months
  • You have documented financial hardship
  • You have not purchased a new house within the last 12 months
  • Your first mortgage is less than $729,750
  • You obtained your mortgage on or before January 1, 2009
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery,money laundering or tax evasion, in connection with a mortgage or real estate transaction.

The above requirements are for guidance only.  Contact your mortgage servicer to see if you qualify for HAFA.