Short Sale HAFA Program

Qualifications and Eligibility

In order to qualify for HAFA, borrowers must already meet the basic eligibility criteria for the HAMP modification program:

• The property is the borrower’s principal residence.
• The first mortgage originated before January 1, 2009.
• The mortgage is delinquent or default is reasonably foreseeable.
• The mortgage’s unpaid principal balance is no more than $729,750 (higher limits for 2 to 4 unit dwellings).
• The borrower’s total monthly mortgage payment exceeds 31% of their gross income.
• The mortgage also needs to be serviced by a lender who is participating in the HAMP program (the majority of lenders are).

Given that the borrower, mortgage and servicer all meet the above qualifications, then the lender must consider HAFA if the borrower:

• Is denied a HAMP trial period plan.
• Does not successfully complete a HAMP trial period plan or is denied a permanent HAMP modification.
• Is delinquent on a HAMP modification (misses at least 2 consecutive payments).
• Requests a short sale or DIL.

How to Apply for HAFA

Short sales are complex transactions involving coordination and cooperation among a number of various parties. Fortunately the HAFA program simplifies and streamlines the process.