Fannie Mae and Freddie Mac HAFA Programs

The Home Affordable Foreclosure Alternative Program, HAFA became effective and April 5th 2010 and has been a welcomed relief for homeowners seeking viable foreclosure alternatives. The HAFA program scheduled to expire on December 31st 2012 streamlines the short sale process enabling approval within 10 days and waives deficiency judgments on the short sale. The HAFA program was not available for any loan that way backed by Fannie Mae or Freddie Mac and thus eliminated many homeowners that would have been eligible for the HAFA program. Our team has already successfully closed HAFA short sales and have over a dozen in the pre-approval process with several lenders. So far the program has been a success with our homeowners who qualify and is a much needed breath of fresh air to a very frustrating and stressful short sale process. 

On August 1st, 2010 Fanne Mae and Freddie Mac rolled out their own HAFA program for any loans backed by Fannie or Freddie. The Fannie Mae Home Affordable Foreclosure Alternatives (HAFA), which, like Treasury's Supplemental Directive 09-09 Revised, is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP), but ultimately were unsuccessful in obtaining one.

The Fannie and Freddie HAFA program will simplify and streamline the use of short sales and deed-in-lieu (DIL) options and use similar forms and timelines. Some of the major differences offered by the new Fannie Mae and Freddie Mac HAFA programs include, but are not limited to:

– Both institutions will pay the servicer a $2,200 incentive fee for successful short sales
– Both institutions will pay the servicer a $1,500 incentive fee for all successful DILs
– The Deed for Lease (D4L) is available for borrowers who request and are approved to remain in the property following a successful DIL

Specific details on these programs can be found by visiting the following links:

Members of Team Baranowski are Certified Distressed Property Experts. We have over two years experience helping homeowners prevent foreclosures. If you or someone you know is in need of assistance or would like an assessment if you qualify for the HAFA program please give us a call at 850-259-1788 or email us at

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