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HAFA,(Home Affordable Foreclosure Alternatives Program) will be implemented on April 5, 2010, is part of the Home Affordable Modification Program (HAMP). The new initiative aims to help homeowners who are unable to retain their home under HAMP through the use of short sales and deeds-in-lieu of foreclosures. As part of the program, incentive payments will be provided to both homeowners and servicers, but homeowners must meet certain requirements to participate.

NAR’s new resources on HAFA were created in response to the Realtors Confidence Index, which showed that buyers continue to be discouraged with the extended short sale process. As a result, foreclosures that could have been prevented often take place. NAR’s HAFA resources explain how the program aims to streamline short sales and, in the process, save more families from foreclosure.

NAR president, Vicki Cox Golder, reports that our members report that short sales are often full of "red tape," delayed and completely lost due to the complications and dealings with banks and service providers. However, we as Realtors are dedicated to helping and improving the short sale process for both buyers and sellers. I also would like to give a caution against compaines like BGS3's Program 3684 and Foreclosure.com solicting agents. These 3rd party companies get between you, your brokerage and your client. I have seen nothing except monies flowing into their coffers at the expense of the agents and brokerages where they are active. Also, I do not believe that they are licensed in all of the states that they are trying to operate in. Caution is the byword. There are alot of "wolves in sheeps clothing" out there that are more than willing to take your fees and part of your commissions.

NAR and SFR certified Realtors, are ready to help make this new program a success. The new guidelines and incentives under HAFA are a crucial step towards reducing problems with the short sale process and provide Realtors with the resources they need to navigate short sale transactions - as well as provide guidance on helpful government programs designed for homeowners facing the loss process. Keep up to date and best to you and your troubled clients.