HAFA/HAMP Program

The HAFA program or Home Affordable Foreclosure Alternative is short sale version of the HAMP or the Homes Affordable Modification Program.  If you have recieved, applied for or declined a HAMP modification you may be eligible for the HAFA Program and recieve and incentive of up to $3,000 at closing for doing a short sale of your home. IF YOU DONT KNOW WHO THE INVESTOR IS ON YOUR LOAN PLEASE CALL OR EMAIL US TO LOOK IT UP.  Below are the guidelines for eligibility in the HAFA Program;
 
Non-Governmental Sponsored Entities (not Fannie Mae or Freddie Mac)
 
Must meet the HAMP threshold eligibility requirements;
  1. Property must be the borrower's primary residence (unless qualifies for applicable employment exception).
  2. First mortgage must have originated on or before January 1, 2009.
  3. Borrower must be delinquent of default must be reasonably foreseeable.
  4. The current unpaid principal balance cannot exceed $729,750.
  5. The total monthly payment must exceed 31% of the borrowers GROSS income.
  6. Borrower must request HAFA OR servicer must have previously exhausted HAMP and other home retention alternatives.
Fannie Mae
 
Same as non GSE except:
  • Borrowers are ineligible if they have:
  1. The ability to make payments but choose not to do so (strategic default)
  2. Substantial unencumbered assetts or significant cash reserves equal to or exceeding 3 times borrower's total monthly mortgage payment of $5,000 whichever is greater.
  3. Property cannot be within 60 days of foreclosure sale date.
Freddie Mac
 
Same as non GSE except:
  1. Borrower must be more than 60 days delinquent.
  2. Borrower's cash reserves must be less than the greater of $5,000 OR 3 times the current monthly payment.
Program Effectiveness
 
If you meet all of the eligibility requirements, then your HAFA short sale will almost always be approed because the lender and the servicer also recieve an incentive from the Treasury Department ot perform these short sales.  On the other hand, approval in the HAFA Program can and usually does take an exceptionally long time which generally leads to having to search for additional buyers and potentially resulting in a foreclosure.

 

 
 
 
 
 

 

Do I qualify for the HAFA Program?