What is a HAFA and can it help with the short sale of my Los Angeles Home?

Real Estate Agent with Glasband Real Estate- Keller Williams South Bay

HAFA has gotten some mixed reviews, mostly bad from my friends in the biz. Seems like it puts a LOT of extra restrictions, along with the benefits. Go ahead and read through it and dissect it yourself. If you want MORE information just google hafa and you'll have more info than you ever DREAMED. Have fun and happy learning!

Original content by Jenny Durling BE# 01342428

What is a HAFA and can it help with the short sale of my Los Angeles Home?

HAFA stands for Homes Affordable Foreclosure Alternatives. The purpose  of HAFA is to help home owners avoid foreclosure through short sales or deeds in lieu of foreclosure. What started out as a voluntary program for streamlining the short sale process is now mandated for 90+% home loans serviced by lenders. The program is effective until December 31, 2012.

HAFA is available to those who:  


  • Request a short sale or deed-in-lieu of foreclosure.  (If the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a deed-in-lieu of foreclosure in which the borrower voluntarily transfers ownership of the property to the servicer.)

short sale your house and walk away with cashIf you can no longer afford you home and want to avoid the negative effects of foreclosure you should determine if you qualify for HAMP -Home Affordable Modification Program. If you do not qualify for a modification,  HAFA could be the right option for you. The Home Affordable Foreclosure Alternatives (HAFA) Program offers financial incentives to encourage and increase participation of mortgage servicers and the investors to complete a short sale or deed-in-lieu of foreclosure in a timely and smooth fashion. The home owner is relieved of the mortgage debt and is also able to walk away with some cash in their pocket.  This is different than a ‘regular' short sale in which the seller is not allowed to receive any compensation at all. The amount the seller receives depends on the type of loan they have and which program their servicer falls under.

To be eligible for a HAFA short sale, all of the following requirements must be met:

  1. Property must be borrower's principal residence
  2. Loan must be a first trust deed originated before 2009
  3. Loan must be either delinquent or default must be reasonably foreseeable
  4. The unpaid balance of the loan must be $729,750 or less for single-family home (or higher amounts for 2-to-4 units)
  5. Borrower must be eligible for, but unable to complete, a loan modification under the Home Affordable Modification Program (HAMP).

Like so many Federal programs, there is really nothing straightforward about the HAFA program. Much depends on who services the loans. Freddie Mac has different requirements than Fannie Mae which are different than non-government entities' versions of the program. Mortgage servicers and investors use the Federal requirements of HAFA to write their own guidelines and determine how to implement the program. There is a lot of information available at the Making Homes Affordable site but before making any decisions, it's best to speak to a professional about your current situation and what options are available to you.

If you are having trouble making ends meet, don't let the bank foreclose on you! I urge you to contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and help you determine your best course of action.

For more information on shorts sales in Los Angeles County and buying or selling property in Silver Lake, Echo ParkLos Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com


Broker Associate, HAFA certified, E-pro
Keller Williams Realty, Los Feliz

Copyright © 2010 By Jenny Durling *All Rights Reserved * What is a HAFA and can it help with the short sale of my Los Angeles Home?*



Comments (2)

Carol West
Carol West Real Estate, LLC - Hillsboro, OR
Real Estate Agent, Hillsboro, Beaverton, Portland


Thanks for reblogging this piece as it's important in this economic situation with so many people with different scenarios.

Aug 21, 2010 02:25 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

You pretty much explained it in a nutshell...nothing is straightforward about the HAFA program.

I appreciate the reblog. I missed this the first time around.

Aug 21, 2010 02:31 PM