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Making Home Affordable An official program of the Departments of the Treasury & Housing and Urban Development

 

 Home Affordable Foreclosure Alternatives (HAFA) Program

If you can't afford your mortgage payment and it's time for you to transition to more affordable housing, the Home Affordable Foreclosure AlternativesSM (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a short sale or a Deed-in-Lieu (DIL) of foreclosure. In a short sale, the mortgage company lets you sell your house for an amount that falls "short" of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.

In either case, HAFA offers benefits that make the transition as favorable as possible:

  • You can get free advice from HUD-approved housing counselors and licensed real estate professionals.
  • Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls "short" of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
  • In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price.
  • HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
  • When you close, HAFA may provide $3,000 in relocation assistance.
 
 
+ Eligibility

You may be eligible for HAFA if you meet all of the following criteria:

  • You have a documented financial hardship.
  • You have not purchased a new house within the last 12 months.
  • Your first mortgage is less than $729,750.
  • You obtained your mortgage on or before January 1, 2009.
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA.

 

+ Program Availability

HAFASM is available for mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac (see Look Up Tools) or serviced by over 100 HAMPSMparticipating mortgage servicers.

+ Steps to Apply for HAFA

The sooner you seek help, the more options you'll have. If this is the first time you've worked with your mortgage company, they will want to ensure that you have been considered for other options to keep your home before they move forward with HAFA. When it's time for HAFA, be prepared to provide the following:

Request for Mortgage Assistance (RMA)

If you've already received an offer, be prepared to submit these additional forms:

  • Alternative Request for Approval of Short Sale (Alternative RASS)
  • Executed sales contract
+ For More Information

If you have additional questions about getting mortgage help, contact one of our housing experts at 888-995-HOPE (4673). These HUD-approved housing counselors will help you understand your options, design a plan to suit your individual situation, and prepare your application. Research shows that homeowners who work with housing experts like these are more successful and have better long-term outcomes. There is no cost to you for this valuable, around-the-clock service. Help is available in more than 160 languages.

Last Updated: 7/18/2012 9:51 AM

Help is a Phone Call Away

888-995-HOPE (4673)
Hearing impaired: 877-304-9709 TTY

As you enter a process that can sometimes be overwhelming, it would be in your best interest to engage a housing expert to help you along the way. Let a HUD-approved housing counselor help you understand your options, prepare your application, and work with your mortgage company.

Hear it from Homeowners

Curtis and Darlene, Chicago IL

Curtis and Darlene of Chicago, IL

Curtis and Darlene had lived in their home for 35 years when Curtis lost his job. That’s when MHA helped them cut their mortgage payments in half.

Beware of Scams

 

Unfortunately, and far too often, homeowners looking for mortgage help end up victimized by scam artists. Know the warning signs to protect yourself, your money, and your home.

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