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



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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 Karen Mathers on March 9, 2010 at 9:54am
I looked at the link Rosemary provided that shows the lenders who have signed up for the HAMP program. Does that mean they will automatically agree to do the HAFA program on April 5th? Does anyone have any good links for the HAFA program? Everything I seem to pull up talks about the HAMP program which is a waste of time.
Comment by Del on March 8, 2010 at 3:36pm
Hi Rosemary, do you know if we can submit packages for HAFA prior to April 5th? I've got sellers on hold till that date but would like to start the process early. Thx.
Comment by Jeffrey Burnham on February 17, 2010 at 8:40am
B of A was the first to sign up... but they so far on my files are totally ignoring the guidelines. I am totally frustrated with only being able to discuss one client per call. Does anyone have a solution to this?
Comment by Rosemary Brooks on February 1, 2010 at 9:44am
To see the complete list: http://www.makinghomeaffordable.gov/contact_servicer.html

These servicers are signed up on the HAMP program which means will be able to offer HAFA (short sale) to homeowners. Get to know these servicers come April 5, 2010.
Comment by Rosemary Brooks on February 1, 2010 at 9:15am
Let's list the banks that have signed on to the HAMP program - since they MUST be a part of the HAMP in order to offer the HAFA (short sale) program.

1. Bank of America - first to sign up...
Comment by Rosemary Brooks on January 25, 2010 at 12:40am
This may be a question we cannot answer right now, but in the coming months we are going to see this question pop up all over. Check out my post on phanton inventory or a clogged system or both?

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