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: 626
Latest Activity: Jul 11, 2017

HAFA Short Sale Information



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 HAFA is now an expired program.

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


Email:  [email protected]


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 Luther Fisher on April 15, 2016 at 4:47am

Do you have that original $3344.16 they originally agreed to? They should be held to that. If not, maybe the buyer can pay the difference outside of closing? 

Comment by Jason Sanseverino on April 14, 2016 at 2:22am

Hi All!

I have an Ocwen 1st (HAFA) and a US Bank 2nd / Ocwen is refusing to pay US Bank the $12k that HAFA allows and US Bank is demanding the $12k. Ocwen is offering  $3344.16 (10% of the balance to US Bank). US Bank originally agreed to this - but the second they realized this was a HAFA short sale - they demanded $12k.

Any thoughts on how to work this out?


Comment by Jeffrey W Wolff on July 20, 2015 at 6:04am

2nd lien question(Banco Popular) - HAFA approval from 1st today.

What are the requirements for banks to cooperate with a HAFA short sale.  Banco Popular is rejecting HAFA and demanding 90% of UPB which is over 80k.

I am in the early stages of trying to get this escalated at Banco.

I even provided them with an appraisal I paid for to show the value is far lower than whatever online system they use.  The 1st lien value is about $9k higher and where the accepted offer was.

Thanks in advance


Comment by Michelle L. Dahl on May 22, 2015 at 9:08am
Comment by Tony and Robin Pickett on March 11, 2014 at 3:00am

1st is with chase's servicer Spec Portfolio Svcs.  They have approved HAFA short sale for non-owner occupant property, with $8k going to the 2nd, Huntington.  Huntinginton wants full deficiency paid by homeowner (who doesn't have it).  Can Huntington take the $8k from Chase and take more from seller at closing?  I thought the idea was that the 2nd had to either accept the $8k offered by HAFA or nothing?

Comment by Sara Mehrpouyan Los Angeles CDPE on October 18, 2013 at 8:05am

I'm going to ask the same question as Vikki Lucas below-- anyone hear about possible extension of HAFA to 2014? 

Comment by Vikki Lucas on October 2, 2013 at 10:22am

Has anyone read anything recently about a possible extension to the HAFA program through 2014?

Comment by Kevin - Greenville, SC on June 24, 2013 at 12:15pm
Comment by Kevin - Greenville, SC on June 24, 2013 at 12:12pm


Fannie Mae doesn't participate in HAFA.  It's called the standard Short Sale/HAFA II. They offer $6000 max towards subordinate lien(s).


Comment by Tom Braunagel on June 24, 2013 at 11:15am

I'm working a first with Nation Star and a second with 5 Lakes.   The first is Fannie Mae and is short with bal. owed $275k.  Second has a balance of $42,000.  We submitted HUD to second with payout to second of $6000.  The second is requesting minimum of $8500 quoting HAFA's minimum is $8500.  The first is telling me that $8500 is only true with a minimum balance of $60,000.  Since the second balance is less than $60,000, they don't have to pay $8500.  Can someone tell me where to find the guideline that talks about how much the first offers a second.....  Thanks in advance...  Tom.


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