Home Affordable Foreclosure Alternatives (HAFA) Program

The HAFA program offers homeowners, their mortgage servicers and investors an incentive for completing a short sale or deed-in-lieu of foreclosure. Under HAFA, the homeowner leaves their home to transition to more affordable housing.

The HAFA program is available for homeowners who:
1. Do not qualify for a trial mortgage modification under the Making Home Affordable Program
2. Do not successfully complete the trial period for their modification
3. Miss at least two consecutive payments during their modification period
4. Request a short sale or deed-in-lieu of foreclosure

Short Sale
In a short sale the servicer allows the home owner to list and sell the property for less that the mortgage owed
Deed-in-Lieu of Foreclosure
If the borrower makes a good faith effort to sell the property but is no successful . This is where the borrower voluntarily transfers ownership to the servicer.

The HAFA Program streamlines both of these options to make them easier for a homeowner to work with their servicer. Under the program a homeowner can receive $3,000 to help with relocation costs.