What
is HAFA?
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NBC Nightly News features a Virginia Short Sale client of Dan and Traci Rochon and explains the new short sale rules. |
| First Introduced: | November 30, 2009 |
| Active On: | April 5, 2010 |
| Overseen By: | US Treasury Department |
| Administered By: | Fannie Mae |
| Regulated By: | Freddie Mac |
| Executed By: | Participating Lending Institutions via Fannie Mae |
| Participating Programs; | Home Affordable Modification Program (HAMP) |
| Focus: | Aid eligible homeowners by pre-approving short sales before listing and releasing them from future liability for the first mortgage debt. |
| Expiration: | December 31, 2012 |
The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in the Inland Empire to avoiding foreclosure, specifically through short sales or deeds-in-lieu of foreclosure. HAFA was announced on November 30, 2009 in a HAMP Update titled Introducing the Home Affordable Foreclosure Alternatives Program.
HAFA directs lenders to assist eligible homeowners in Riverside County and San Bernardino County quickly and effectively implementing short sales or deeds-in-lieu by providing financial incentives to lenders that carry out foreclosure alternatives through the program's guidelines set forth in Supplemental Directive . The program was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures. HAFA in its current state is only applicable to conventional-type, non-Governmental Serviced Enterprises (non-GSE) mortgages and therefore does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac. These organizations may have plans to release their own versions of HAFA.
Mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program. For more information about your options, you should contact your mortgage servicer.
If you have questions about the program, or want guidance about how these options may impact you personal situation, you may want to speak to a HUD-approved housing counselor for free.
To get the short sale process started, contact me direct at 888 789-1449
