What is H.A.F.A.? Understanding the Facts

Real Estate Agent with Coldwell Banker C&C Properties

What is H.A.F.A.? Understanding the Facts

HAFA is the latest government program to help homeowners who are in a financial crisis sell their homes in order to avoid foreclosure. H.A.F.A. stands for Home Affordable Foreclosure Alternatives; in a nutshell it is the process of a participating lender "pre-approving" the terms of a short-sale and allowing borrowers the opportunity to sell their home while agreeing to fully release them from all liability. The key difference with this new program is that an agreement between the borrower and the mortgage servicer is mutually decided upon (a pre-approval to sell) before the house gets placed on the market, making life easier for all parties involved.  Although not the exception, it is the ideal process for the Lender.

How new is H.A.F.A.?  Took effect April 5, 2010 and it runs until December 31, 2012.

What's in it for me (the borrower) and why should you consider H.A.F.A?

• Because the impact on your credit is a lot less painful than if you let your home go in foreclosure. 

• Because if you qualify for HAFA, you may also be eligible for financial incentives to help with your relocation expenses ($3,000 is what the government is helping you with).

• HAFA is not a solution to help people remain in their homes but a program that allows those who do not qualify for HAMP (loan modification program) to use the short sale process instead of getting foreclosed upon.

HAFA Procedures

Step 1: Lender evaluates borrower for a loan modification under HAMP, Home Affordable Modification Program. Before a short-sale is approved by the lender, you will be considered for a loan modification first.

Step 2: Lender evaluates borrower unable to complete HAMP modification for short-sale.

Step 3: Lender issues Short Sale Agreement (HAFA SSA).

Step 4: Borrower lists the property for sale using a licensed real estate agent, sorry no FSBO's.

Step 5: Borrower and agent market and sell the property.

Step 6: Borrower submits to lender a Request for Approval of Short Sale.

Step 7: Lender approves the short sale within 10 business days.

Step 8: Sale closes escrow.


Want more information? Log on to http://makinghomeaffordable.gov/hafa.html

Want to know if your Lender is participating in this government program? Go to http://makinghomeaffordable.gov/contact_servicer.html. Some of the Lenders already participating are Bank of America, Wells Fargo, Citigroup, J.P. Morgan Chase.

Do You Need Help?  Let's sit down and talk. We can guide you through this and go over some of these steps in more detail. If you answer yes to all of these questions, contact us immediately:

Q. Is your property your principal residence?

Q. Was your mortgage loan originated before 2009?

Q. Are you behind on your payments or is it reasonably foreseeable?

Q. Is your unpaid loan balance less than $729,750?

Q. Have you or would you be willing to apply for a loan modification under the Home Affordable Modification Program (HAMP) first?


Chris and Maria Jeantet,

Certified Distressed Property Experts, CDPE

We specialize in working with Lenders to successfully carry out short-sale transactions and helping people make sense out of programs that impact them!


Coldwell Banker, C&C Properperties

1801 Buenaventura Blvd, Redding CA 96003

Cell Phones: (530) 510-0810 or (530) 510-8880




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Chris and Maria Jeantet, "the real estate couple"

EMAIL US maria@ccproperties.com

CALL Chris at (530) 510-0810 or Maria at (530)510-8880






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Jody Lautenbach
Century 21 Premier Associates - Pella, IA

Great chance to share information. Let's hope it help speed up the process.

May 25, 2010 06:32 AM #1
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Excellent summary of the HAFA program Chris and Maria.

May 25, 2010 06:48 AM #2
Chris and Maria Jeantet
Coldwell Banker C&C Properties - Redding, CA
Redding CA Real Estate Couple
Thanks Jody, the 10-day response system will be ideal, whether realistic we shall see!
May 25, 2010 07:11 AM #3
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Redding CA Real Estate Couple
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