About HAFA – Home Affordable Foreclosure Alternatives Program

Team Baranowski is CDPE-designated and the leading team for short sales in North West Florida!


What is HAFA?

The Home Affordable Foreclosure Alternatives (HAFA) Program was announced on November 30, 2009 in a HAMP Update titled Introducing the Home Affordable Foreclosure Alternatives Program.

HAFA is a government sponsored initiative overseen by the US Treasury Department. This initiative is administered by Fannie Mae and is targeted to assist all Home Affordable Modification Program (HAMP) eligible homeowners in avoiding foreclosure. Options for avoiding foreclosure include short sales or deeds-in-lieu of foreclosure.

Supplemental Directive10-18 offers incentives to lenders to assist homeowners in short sales or deeds-in-lieu. Lenders are encouraged to streamline the short sale process and are offered financial incentives to carry out these foreclosure alternatives.  The Home Affordable Foreclosure Alternative program evolved to solve the massive issue with short sales processes and procedures being lengthy, confusing and somewhat unmanageable. HAFA currently only supports conventional loans and does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.

Details of HAFA

The Home Affordable Foreclosure Alternative Program HAFA was introduced to simplify and streamline the short sale process:

  • HAMP or Home Affordable Modification Program has had lack luster success and many borrowers that did not qualify for HAMP needed a viable foreclosure alternative
  • HAFA aims to standardize the short sale process and set limits on  approval time
  • All parties involved receive financial incentives to complete a short sale: borrowers, services, investors and real estate agents
  • HAFA mandates that borrowers be fully released from future liability for the debt
  • Borrowers must list their property with a licensed real estate agent and allows the borrower to receive pre-approved short sale terms prior to the property listing their property

HAFA provides financial incentives as follows:

  • Homeowners will have no out-of-pocket expenses and lenders will pay all servicing fees
  • HAFA qualified homeowners may receive $3,000 in Borrower Relocation Assistance after a short sale or deed-in-lieu has been completed
  • Servicers participating in the HAFA program receive up to $1,500 upon completion of a short sale or deed-in-lieu
  • Financial incentives for investors include up to $2,000 for those who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders

 Important HAFA documents

Important documents for the Home Affordable Foreclosure Alternatives HAFA program:

Am I Eligible for HAFA?

The good news is that most homeowners facing financial hardship are eligible. If you are eligible for HAMP but cannot pay your mortgage, then there is a good chance that you qualify for a short sale via the HAFA program. Unfortunately, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify.

If you meet one or more of the requirements below then services must consider your eligibility for HAFA within 30 calendar days:

  • You request a short sale or deed-in-lieu
  • You are delinquent on a HAMP modification or are missing at least two consecutive payments
  • Do not qualify for a HAMP Trial Period Plan
  • Do not successfully complete a HAMP Trial Period Plan

How does my loan qualify for HAFA?

  • Your loan is not owned or guaranteed by Fannie Mae or Freddie Mac
  • Your property must be your principal residence
  • Your principal balance is equal to or less than $729,750
  • Your loan is delinquent or default is imminent
  • Your loan originated on or before January 1, 2009
  • Your total monthly mortgage payment exceeds 31 percent of your gross income

How do I Apply for HAFA?

Once you have determined that you qualify for HAFA, it is imperative that you contact your lender and notify them of your interest in participating in the HAFA program. If you are unsure whether or not your meet the eligibility requirement you can contact Team Baranowski for a free consultation. 

HAFA FAQ – For Homeowners

The Distressed Property Institute has put together a wealth of knowledge regarding the HAFA program. A FAQ for Homeowners can be read by clicking the links below:

Craig and Joe Baranowski of Team Baranowski are CDPE, or Certified Distressed Property Expert and have undergone extensive training for foreclosure avoidance options, specifically short sales. We are 100% focused on helping homeowners avoid foreclosure.

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This site, Craig Baranowski or Keller Williams Realty is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax adviser for more information.