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Home Affordable Foreclosure Alternatives Program (HAFA)

HAFA® provides homeowners the opportunity to exit their homes and be relieved of their remaining mortgage debt through a short sale or a deed-in-lieu of foreclosure (DIL). It also provides homeowners with $10,000 in relocation assistance.

Application Deadline: December 30, 2016

NEXT STEP: Prepare What You'll Need ›

Features and Benefits

  • Through HAFA, you can get help with your primary residence or rental property.
  • If a HAFA short sale doesn’t work, you may be able to give the title back to your mortgage company in a HAFA deed-in-lieu of foreclosure (DIL).
  • Once you complete a HAFA short sale or DIL, there is a waiver of deficiency, meaning you are released from any remaining mortgage debt.
  • HAFA offers $10,000 in relocation assistance for you or your tenant.
  • In some cases, HAFA has a less negative effect on your credit score than a foreclosure, which allows for a faster financial recovery.


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

  • You are struggling to make your mortgage payments due to financial hardship.
  • You are delinquent or in danger of falling behind on your mortgage.
  • You obtained your mortgage on or before January 1, 2009.
  • Your property has not been condemned.
  • You owe up to $729,750 on your primary residence or one-to-four unit rental property (loan limits are higher for two- to four-unit properties).


Mortgage companies nationwide—including Bank of America, CitiMortgage, JPMorgan Chase, and Wells Fargo—participate in Making Home Affordable (MHA) programs.  See if your mortgage company is participating. If not, or you are not eligible for MHA, ask your mortgage company about other options available to you.

Similar Programs

Fannie Mae, Freddie Mac, Federal Housing Administration (FHA), Veterans Affairs (VA), and U.S. Department of Agriculture (USDA) also offer mortgage solutions for homeowners with mortgages they own, insure, or guarantee.

Find out whether your mortgage is owned, insured, or guaranteed by Fannie Mae, Freddie Mac, FHA, VA, or USDA, and learn more about the MHA programs and other resources they've designed to address your needs.

Complementary MHA Programs

Before you are approved to proceed with HAFA, you will be evaluated for the Home Affordable Modification ProgramSM (HAMP®) to see if you are eligible for a modification that will lower your monthly payments and allow you to remain in your home.

For More Information

Visit the Learning Center for Frequently Asked Questions (FAQs) and the Glossary of Key Terms.

If you have additional questions or need direct assistance, don't hesitate to reach out for help by calling 888-995-HOPE (4673). You will be connected with an expert from a HUD-approved housing counseling agency. These counseling experts can help you understand your options, design a plan to suit your individual situation, prepare your application; and in many cases, they're able to submit the application for you.

Studies suggest 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 170 languages.

Last Updated: 6/24/2016 15:42