The federal “Home Affordable Foreclosure Alternatives” program (HAFA) is designed to provide assistance to borrowers who seek government assistance in short selling their home or a Deed in Lieu of Foreclosure (DIL).  This program offers an additional alternative for borrowers who are unable to keep their property under other federal programs such as HAMP or HARP.   In particular, a short sale or DIL approved under HAFA offers the following benefits:

  • Requires borrowers to be fully released from any future liability for the mortgage debt otherwise known as a deficiency;
  • Borrowers need not be in default on their loan so long as default is reasonably foreseeable;
  • Provides financial incentive for lenders and borrowers including relocation assistance for eligible borrowers;
  • Establishes uniform processes and procedures and timelines to streamline the short sale or DIL approval process.

In order to be eligible for HAFA, your mortgage mustserviced by a participating mortgage servicer, andthe loan have been originated on or before January 1, 2009.  The balance remaining on the first lien must be less than the current value of the property.   The borrower will generally need to document a financial hardship such as death, divorce, disability, job relocation, etc. However, the property does not need to be a principal residence so long as it is one to four unit property.

Borrowers who may be eligible under this program are encouraged to reach out to their servicer to determine their eligibility.  To qualify the short sale under HAFA, you must use the federally approved forms which can be obtained from www.makinghomeaffordable.gov website or from your participating servicer.

This includes the Short Sale A

The federal “Home Affordable Foreclosure Alternatives” program (HAFA) is designed to provide assistance to borrowers who seek government assistance in short selling their home or a Deed in Lieu of Foreclosure (DIL).  This program offers an additional alternative for borrowers who are unable to keep their property under other federal programs such as HAMP or HARP.   In particular, a short sale or DIL approved under HAFA offers the following benefits:

  • Requires borrowers to be fully released from any future liability for the mortgage debt otherwise known as a deficiency;
  • Borrowers need not be in default on their loan so long as default is reasonably foreseeable;
  • Provides financial incentive for lenders and borrowers including relocation assistance for eligible borrowers;
  • Establishes uniform processes and procedures and timelines to streamline the short sale or DIL approval process.

In order to be eligible for HAFA, your mortgage mustserviced by a participating mortgage servicer, andthe loan have been originated on or before January 1, 2009.  The balance remaining on the first lien must be less than the current value of the property.   The borrower will generally need to document a financial hardship such as death, divorce, disability, job relocation, etc. However, the property does not need to be a principal residence so long as it is one to four unit property.

Borrowers who may be eligible under this program are encouraged to reach out to their servicer to determine their eligibility.  To qualify the short sale under HAFA, you must use the federally approved forms which can be obtained from www.makinghomeaffordable.gov website or from your participating servicer.

This includes the Short Sale Agreement (SSA) and Request for Approval of Short Sale (RASS).  These rules and guidelines are constantly being amended and modified by the federal and quasi-federal agencies and participating mortgage servicers so make sure you keep abreast of these continuing developments .For more information on this program or other government sponsored loan modification or refinance alternatives, you can go to www.fhfa.gov, or www.makinghomeaffordable.gov.

Please set up a consult for a few minutes if you have a question.  At KKOS we have an attorney, Lee Chen, well versed in this area and helping advise clients around the country.  We don’t sell a ‘package’ or a ‘service’ just our time, no matter how long or short, to give you a straight answer and honest advice.   Please give the office a call at 888-801-0010 to set up a consultation with Lee if you have a mortgage in peril and need help dealing with. He will work with you to set up a ‘game plan’ and the accounting team at K&E CPAs can work on prior tax returns that may need to be completed and/or amended.

greement (SSA) and Request for Approval of Short Sale (RASS).  These rules and guidelines are constantly being amended and modified by the federal and quasi-federal agencies and participating mortgage servicers so make sure you keep abreast of these continuing developments .For more information on this program or other government sponsored loan modification or refinance alternatives, you can go to www.fhfa.gov, or www.makinghomeaffordable.gov.

Please set up a consult for a few minutes if you have a question.  At KKOS we have an attorney, Lee Chen, well versed in this area and helping advise clients around the country.  We don’t sell a ‘package’ or a ‘service’ just our time, no matter how long or short, to give you a straight answer and honest advice.   Please give the office a call at 888-801-0010 to set up a consultation with Lee if you have a mortgage in peril and need help dealing with. He will work with you to set up a ‘game plan’ and the accounting team at K&E CPAs can work on prior tax returns that may need to be completed and/or amended.