My negotiator at BofA just told me that HAFA no longer exists. I thought it had been extended. Isn't this something the banks should know or are they trying to get away with things. Anyone here have any info/advice on this? Thank you!

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Freddie and Fannie HAFA no longer exist.

Non GSE HAFA expired on 12-31 unless extended and I do not believe it was.

This is unfortunate. :(

Non GSE HAFA short sales have been extended for an additional year through 2013.  Fannie & Freddie do have their own programs that give incentives to home owners that are good also.

The new Fannie and Freddie short sales are much easier than HAFA and still offer an incentive to the seller. What's the reason they want to go HAFA?

Traditional, Treasury HAFA (Non GSE) was extended in March to run through 12-31-2013.

Bryant is right, FNMA and Freddie (GSE) "HAFA" expired 12-31 2012.  But, as Bryant said, the benefits/program for FNMA and Freddie are essentially the same as HAFA anyway.

A colleague of mine called Freddie Mac directly yesterday & confirmed that Fannie & Freddie are no longer participating in HAFA, but they will offer relocation assistance on their short sales for owner-occupied homes. Hope this helps! 

Non GSE HAFA short sales have been extended  through 2013.  Fannie & Freddie do have their own programs that give incentives to home owners which is much like the HAFA program. Banks are making many changes this year to their short sale "programs".


The US Treasury Home Affordable Foreclosure Alternatives program, which is part of the Obama Administration’s Making Homes Affordable program, has been extended one year and now covers rental properties. The new policy changes for HAFA will take effect February 1, 2013, but servicers can begin implementing the changes earlier. To be eligible, an initial package must be submitted on or before Dec. 31, 2013, and the transaction must be closed on or before Sept. 30, 2014.

It includes a $3,000 relocation incentive for the homeowner and ensures that the outstanding loan balance is forgiven. The amount allowed to pay off a junior lien, such as a second trust deed, has been increased to $8,500 from $6,000.

Homeowners do not have to be delinquent on their payments to apply. And the homeowner can elect to make full payments during the short sale process, in order to stay current on their loan. Homeowners who sell a home using the HAFA program are not liable for the outstanding balance of the loan, a major selling point when President Obama launched the program.

The Treasury’s version of the HAFA program does not apply to all mortgages. Loans owned, insured or guaranteed by Fannie Mae, Freddie Mac, FHA, VA or the Rural Housing Service are not eligible for this program. Fannie Mae and Freddie Mac have their own versions of the HAFA program, and they have not adopted the frequent updates along with the Treasury.

There have been some draw backs to this program however, check them out here.

Hi Simon,

Many lenders are telling me that it was not extended. Is this for short sales too? Where are you getting this information? Thank you :)

Simon, where did you get this information from?

In Supplemental Directive 12-02, Treasury announced it was extending the deadline for

eligibility in MHA, including HAFA. This Supplemental Directive amends such guidance to

provide that in order for a loan to be eligible for HAFA a written request (mail, fax or e-mail)

requesting consideration for a short sale or deed-in-lieu (DIL) must be submitted by the borrower

to the servicer on or before December 31, 2013. This Supplemental Directive eliminates the

alternative of receipt of a fully executed Short Sale Agreement (SSA) or DIL Agreement, in the

forms posted on HMPadmin.com. The guidance that the HAFA short sale or DIL must have a

transaction closing date on or before September 30, 2014, remains effective.


Remember HAFA Treasury only applies to non Freddie, Fannie, FHA, VA and USDA Loans.



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