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 Sheila Vardakis on February 2, 2013 at 4:49am

Wendy................I am doing two of them right now.  Same owner for both properties but diff banks.  One with BOA and the other with Chase.  Since the owner can not provide a recent utility bill in their name they won't get the $3K incentive.  However this can be given to the tenant if the owner is okay with this.  the only real benefit for the owner is to ahve the deficiency waived which is HUGE since it is investment property. 

Comment by Wendy Rulnick on January 23, 2013 at 1:28pm

Has anyone completed a HAFA of an investment property? One that owner never occupied.

Comment by Lisa Allen on January 23, 2013 at 6:14am

I have a HAFA approved 1st mortgage with Nationstar...the 2nd lien (PNC) is requiring $8500 to release. Nationstar will only pay them 6% of the balance ($4500). Is there any way around this? PNC is telling me that I must negotiate the full $8500 with the 1st. I'm at a stand still since Nationstar says their hands are tied. Any suggestions?

Comment by RAJDAI RIVERA on January 11, 2013 at 6:11pm

do any one  in ny have short sale or reo for sale  in brooklyh or queens plese let me know i am looking to buy close asap thank you 

Comment by Kevin - Greenville, SC on January 11, 2013 at 3:56pm

Who is the Servicer?

Comment by Kevin - Greenville, SC on January 11, 2013 at 3:55pm


The only HAFA program that currently exists is for non Freddie and Fannie Loans.  The cap is $8500 towards Mortgage Liens.  There is no cap on non Mortgage Liens.

Comment by Kevin - Greenville, SC on January 11, 2013 at 3:53pm

There is no minimum only a maximum. 

Comment by Ludora Cooper on January 8, 2013 at 1:23pm

Is the "minimum" $2500 that hafa will pay to a Jr. Lien? First Morgt. held by Chase. 

Comment by Karyl Moore on December 18, 2012 at 10:10pm

received today from B of A

Fannie Mae and Freddie Mac HAFA Short Sale Program Expiration 

The Fannie Mae and Freddie Mac Home Affordable Foreclosure Alternative (HAFA) program will expire on December 31, 2012.  A cutoff date of December 14, 2012, has been established for all Short Sale Agreements to be issued out to the borrower for files without an offer. 

Your client/borrower(s) may still be accepted into the program if a fully executed Short Sale Agreement is received and uploaded into Equator on or before December 31, 2012. Files with an offer can no longer be initiated for a HAFA short sale.

Files that do not meet the requirements above will be declined from HAFA participation and will then be considered for Bank of America's Cooperative Short Sale program or a traditional short sale.

Note: After December 31, 2012, Fannie Mae and Freddie Mac files can be initiated into the Cooperative Short Sale or traditional short sale process. Homeowners may be eligible for relocation assistance under these programs.

Comment by Kylee Roe on November 26, 2012 at 3:38pm

Tara, a year ago I had a HAFA with preapproved price. We got the price, but then HAFA negotiator came back and said the price didn't support what the seller wanted to net. I kicked and screamed (oh, and professionally presented documentation) that the approval letter asked for an approved price, and did not stipulate any "seller net". I got the home sold at approved price. So, yes, you can go back and renegotiate, even if they say you can't--at least last year one could! Good luck!


Members (626)



© 2019   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************