HUD-approved
housing specialists provide homeowners with expert and personalized
help with their mortgage issues for free. For more information, call a
Nonprofit at (800) 254-4100 or contact the U.S. Department of Housing and Urban Development at Telephone: (202) 708-1112
HAFA Short Sale Guidelines and Assistance for Realtors Help for Real Estate Agents and Their Clients to Apply for the HAFA Program
Taking effect on April 5, 2010, the government’s Home Affordable Foreclosure Alternative (HAFA) program is intended to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP).
HAFA Realtor Information:
HAFA Assistance for your Clients
As a HUD approved, nonprofit housing counseling agency, Springboard™ offers free, comprehensive HAFA Short Sale and Deed-in-Lieu (DIL) assistance for your clients. This priority counseling session, known as Realtor Appointment Processing In Demand (RAPID) provides a stream-lined approach to qualifying and applying a homeowner for a HAFA Short Sale or DIL.
HAFA application process
Call a housing counselor with your client's profile information.
A HUD certified counselor will contact your client within 24 hours.
The counselor will determine if your client qualifies for the HAMP and HAFA programs.
The counselor will teleconference with your client and their servicer to discuss the proposal.
Client housing and mortgage information is electronically sent to the servicer.
A contact person at the servicer will be provided to your client for future inquiries.
HAFA Incentives and Protection
HAFA provides incentives and protection for the borrower, servicer and real estate agent when a Short Sale or Deed-in-Lieu of Foreclosure (DIL) is performed on a HAMP eligible loan.
Real Estate Agent
Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).
Borrower
$3,000 is given to the borrower for relocation assistance.
Given standard time frames so that borrowers have enough time to respond at each step of the process.
Will be fully released from future liability for the first mortgage debt. Cash contributions, promissory notes, or deficiency judgments are disallowed.
Servicer
Receives $1,500 to cover administrative costs.
Investors receive up to $2,000 for allowing a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).
HAFA Eligibility and Qualifications
In order for a borrower and their mortgage to be eligible for HAFA, the following 3 qualifications must be met: 1. Mortgage meets HAMP eligibility requirements
The property is the borrower’s principal residence, except that the property can be vacant up to 90 days prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative (RASS) or DIL Agreement if the borrower provides documentation that the borrower was required to relocate at least 100 miles from the property to accept new employment or was transferred by the current employer and there is no evidence indicating that the borrower has purchased a one- to four-unit property 90 days prior to the date of the SSA, Alternative RASS or DIL Agreement;
The mortgage loan is a first lien mortgage originated on or before January 1, 2009;
The mortgage is delinquent or default is reasonably foreseeable;
The current unpaid principal balance is equal to or less than $729,750; and
The borrower’s total monthly mortgage payment (as defined in Supplemental Directive 09-01) exceeds 31 percent of the borrower’s gross income
All HAMP servicers are required to implement HAFA.
2. Borrower has already applied for a HAMP modification A borrower must first be evaluated for a HAMP modification before any HAFA options are available.
3. Borrower has been denied a HAMP modification Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days of the date the borrower:
Does not qualify for a Trial Period Plan;
Does not successfully complete a Trial Period Plan;
Is delinquent on a HAMP modification by missing at least two consecutive payments; or
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