HAFA Program

Home Affordable Foreclosure Alternatives Program (HAFA)

In February 2009, the Obama Administration introduced a Plan to address the key problems at the heart of the current crisis to get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure. The program offers various plans to modify or refinance your mortgage or the foreclosure alternatives plan for those that are not able to participate in or not interested in the modification programs.

The Home Affordable Foreclosure Alternatives Program provides opportunities for homeowners who can no longer afford to stay in their home but want to avoid foreclosure to transition to more affordable housing through a short sale or deed-in-lieu of foreclosure. With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortage debt they owe.

Summary of HAFA Program Guildlines

• HAFA is mandatory for all particpants in the HAMP program. This means that borrowers who can't qualify or stay in the HAMP program must be placed through HAFA before foreclosure is implemented.
• Borrowers may be allowed up to $3,000 for relocation assistance.
• Borrowers and Realtors® will receive pre-approved terms before listing the property, including the lenders net on the proceeds of the sale. It also requires that lenders accept or reject an offer (within reason) within 10 days of receiving all the required documents.
• The program will utilize a standard process and uniform documents. Borrowers must use a licensed real estate professional for the transaction.
• Lenders will be required to release borrowers from future liability on the first mortgage. This also included subordinate liens that receive incentives under HAFA.

Mortgage Servicers Participating in the HAFA Program

The HAFA program is available to loans that are owned or guaranteed by Fannie Mae or Freddie Mac.  Use this Look-Up tool to determine if your loan is serviced by either Fannie Mae or Freddie Mac.

How I Can Help

Short Sale Experience

Nancy David is experienced in short sale listings. I have a proven track record for successfully negotiating many short sale transactions. I discreetly and professionally assist my Sellers and understand the nuances of this type of listing. I guide my Sellers through the entire process and provide the expertise and experience for a smooth and stress-free sale. Be sure to visit the Short Sale section of my website for more information.

Foreclosure Alternatives for VA Loans

VA Compromise Sale Program

When a homeowner receives an offer based on current market value that is lower than the total amount of the loan payoff, the homeowner can ask VA to approve a compromise sale. The VA will review the situation with the mortgage company and if approved, pay the difference between the mortgage balance and the proceeds of sale. Sometimes the mortgage company can approve the sale on behalf of VA through the Servicer Loss Mitigation Program. In fact, a majority of the mortgage companies now have a Loss Mitigation Department authorized by VA to process VA compromise sales. For loans originated on or before December 31, 1989, the seller may be required to sign a promissory note. A promissory note obligates the seller to pay part of the difference back to VA. The amount is always less than the amount the homeowner would owe VA if a foreclosure sale takes place, and monthly payments are arranged based on the homeowner’s financial ability

• Visit the Houston Regional VA web site for more information on Compromise Sales.

Performance Reports

View the Making Home Affordable Program Performance Report through July 2012. The Treasury department has been monitoring the performance of participating mortgage servicers since the inception of the program in the spring of 2009. Incentives are being withheld from 3 of the top 10 servicers