HAFA - Home Affordable Foreclosure Alternative


HAFA - Home Affordable Foreclosure Alternative

Let's get this group going to track how this program is helping homeowners avoid foreclosure.

Members: 628
Latest Activity: Jul 11, 2017

HAFA Short Sale Information



Click The Button Now To Hire A Short Sale       Superstar To Support You.


The escalation process for HAFA is easy and effective and works with all HAFA participants.


Email:  [email protected]


Borrower's Name

Property Address

Loan Number

Authorization to Speak Form (you need to give them authorization to speak with the lender - meaning the home owner AND they need authorization to speak to you)

Give them a time line and details of the problem.


Here are some documents that may help you understand the HAFA guidelines.


HAFA Overview for Agents 

Bank of America HAFA overview 

Forms and Guidelines



RMA Instructions.pdf

New Dodd Frank.pdf


Quite possibly because HAFA and HAMP have both lagged far behind in expected completions, the Treasury Department recently reviewed and eliminated some of the rules to make eligibility easier.

With the HAFA program being designed, in part, to catch and help those homeowners who fell out of the Home Affordable Modification Program. However, the program has had less than 1,000 short sales since its April 2010 launch.

Among the Treasury’s changes are that servicers are no longer required to verify a borrower’s financial information or determine whether a borrower’s total monthly mortgage exceeds the bar of the 31% debt-to-income ratio.

According to one Treasury spokesperson, “While this requirement has set the standard for mortgage affordability under HAMP, it is not as important for homeowners ready to transition out of their home. Eliminating this requirement further streamlines the process for homeowners applying to the program.”

Servicers are, however, still required to obtain a signed hardship affidavit.

Section, Chapter IV of the Handbook is amended to increase from $6,000 to $8,500 the amount a servicer may authorize the settlement agent to pay from gross proceeds to subordinate mortgage holder(s) in exchange for a lien release and full release
of borrower liability. Investors will continue to be reimbursed one dollar for every three dollars of short sale proceeds paid to a subordinate mortgage holder up to $2,000.

All borrowers must now receive a short sale agreement within 30 days of the request.


The best way to assure your short sale is not yanked for the homeowner to go try a loan mod after you are listed it is to .... make sure your borrower seek the HAMP program first, then HAFA. Also, if you run out of time (120 days) ask for an extension.


Discussion Forum

Only Shorting the 2nd Lien Holder-Wells Fargo 1st is CITI and investor is Fannie Mae.

Started by Jimmy Williams. Last reply by Brian Avery Mar 25, 2016. 2 Replies

Hello,1st Lien Holder is serviced by Citi, Fannie Mae is Investor, who has filed a LIs Pendance. 2nd is HELOC with Wells FargoCiti is not short in the sale, but Wells Fargo will be short.  Will this…Continue

Tags: Short, Sale, Citi, Fargo, Wells


Started by Kathy Dyer Realtor Rosevillle Ca. Last reply by Kathy Dyer Realtor Rosevillle Ca Apr 2, 2015. 4 Replies

I have a new short sale in Ca. We are only shorting the 2nd lien holder, GMAC. Can we do Hafa if the first is not being shorted? NON GSE.Continue

Tags: Holder, Lien, 2nd, HAFA

OCWEN participates in HAFA, but doesn't pre-approve the short sale???

Started by Jim Schneider. Last reply by Kevin - Greenville, SC Mar 1, 2014. 2 Replies

I just got off the phone with the short sale department at OCWEN, and they are saying that they still participate in hafa, but they don't have to issue a pre-approval letter. I thought that was the…Continue

Investors Turning Down Short Sale Because Their Own Appraisal Is Too Low

Started by Kathleen Sheridan. Last reply by joe beauchamp Oct 2, 2013. 1 Reply

I just had a investor turn down a HAFA short sale because the appraisal that they ordered is too low. It seemed spot on to me. Now they want me to sell the property as a regular short sale for an…Continue

Tags: FannieMae, Low, Too, Appraisal

Comment Wall


You need to be a member of HAFA - Home Affordable Foreclosure Alternative to add comments!

Comment by Kevin - Greenville, SC on May 17, 2013 at 3:58pm

Q. If the HAFA Incentive makes the net fall below the *minimum acceptable net
proceeds,* should that cause the Short Sale to be declined?

A. As it is reimbursed 100% by TSY it should not have any effect.  You should ask the servicer what they included in minimum net.

Laurie A. Maggiano
Director of Policy
Homeownership Preservation Office                                                          
Department of the Treasury                                                     
1500 Pennsylvania Avenue, NW
Washington, DC  20220

Comment by Kevin - Greenville, SC on May 17, 2013 at 3:48pm
Comment by Kevin - Greenville, SC on May 17, 2013 at 3:40pm
Comment by Jesse Storm on May 17, 2013 at 3:31pm

There are no set in stone Guidelines for how much if any money has to be given to a seller. If the bank only get's there basic net number they need most times they will not give Hafa money to the seller. I have had seller that moved out of homes for over a year get HAFA money and seller's who have no money to move get nothing. 

Comment by Tony and Robin Pickett on May 14, 2013 at 2:32pm
Have a non GSE serviced by Nationstar! Approved for HAFA. 2nd is also serviced by nationstar affiliate, NMS, for different investor. 1st only allowing 6% of unpaid principal balance and 2nd demanding $8500. We are short about $3k. Buyer is paying full appraised value and can't go over to cover the diff. Seller has decided to let it foreclose if he doesn't get $3k incentive. We can reduce commission $1k but still short. We thought we understood HAFA but it seems like each deal there is a diff amount offered to the 2nd. What are the guidelines or is it investor specific? Where can I find the HAFA guidelines online?
Comment by Jim Schneider on April 9, 2013 at 11:31am

is there a different RMA when the property is an investment property? The RMA has the owner stating they are occupying, and I thought HAFA was opened to investments now. Please post if you can. Thanks.

Comment by Sheila Vardakis on February 6, 2013 at 12:10pm

Kevin..............don 't beat around the bush.............what are you really trying to say???  LOL. 


Okay............well I am rethinking my business plan because we have a lot of these priced homes in this market unfortunately. 

Comment by Kevin - Greenville, SC on February 6, 2013 at 12:08pm

You either don't take the listing or expect to live with the % offered.

Comment by Sheila Vardakis on February 6, 2013 at 12:01pm

Homes sold for under $50K are paid a flat $3K under the BOA COOP program but HAFA program does not pay a minimum so it is whatever the sales price is times 6%????????????

I am about done with properties under $50K.  How does everyone else deal with them and the low commission of 6% with no minimum paid?????

Comment by Wendy Rulnick on February 2, 2013 at 6:02am

Thank you, Sheila!


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