Thursday, August 19, 2010

What is HAFA?

The HAFA program is a government-subsidized Home Affordable Foreclosure Alternatives program for distressed homeowners to sell their homes to avoid foreclosure. Under HAFA, a participating lender will pre-approve the terms of a short sale and give the borrower at least 4 months to market and sell their home using a licensed real estate professional.

The eligibility requirements are:

• Property must be a borrower’s primary residence

• Loan must be a first trust deed originated before 2009

• Loan must be delinquent or default must be reasonably foreseeable.

• Current unpaid principle balance must be $729,750 or less for single-family home (or higher amounts 2 to 4 units); and

• Borrower must be eligible for, but unable to complete, a loan modification under the home affordable program (HAMP).

The effective dates for the HAFA program April 5th to Dec. 31, 2012. You can find a list of participating lenders at

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