iNFORMATION PROVIEDED BY
By Jeff Lischer
Initially announced on May 14, 2009 , with guidance and standard forms issued on November 30, 2009, the program will help owners (referred to below as borrowers) who are unable to retain their home under the Home Affordable Modification Program (HAMP). A borrower (the current owner) may be able to avoid a foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL) under HAFA. The guidance and forms released on November 30 do not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac. Those enterprises will issue their own HAFA guidance and forms.
What is HAFA?
Who is eligible for HAFA?
The borrower must meet the basic eligibility criteria for HAMP:
· Principal residence.
· First lien originated before 2009.
· Mortgage delinquent or default is reasonably foreseeable.
· Unpaid principal balance no more than $729,750 (higher limits for 2 to 4 unit dwellings).
• Borrower's total monthly payment exceeds 31% of gross income
Home Affordable Foreclosure Alternatives Program (HAFA), which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP). Under HAFA, a borrower (the current owner) may be able to avoid foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL).
HAFA is designed to simplify and streamline the use of short sales and deeds-in-lieu of foreclosure by improving the process. Specifically, HAFA will:
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