Special offer

Hip, Hip, Hooray for HAFA!

Real Estate Agent with Welcome Home Realty

Hip, Hip Horray for HAFA, Phoenix Arizona!

You put your right arm in, you put your right arm out,

Put your right arm in and shake it all about.

You do the hokey pokey and you turn yourself around,

That's what it's all about!

If you're trying to sell your home in a short sale, you probably are familiar with doing a little dance to you're bank's theme song: The Short Sale Hokey Pokey.

First, you need to dig through a supply of months and years of filed paperwork, seeking out rumbled tax returns and coffee-stained pay stubs.

Then you have the joy of writing a hardship letter, which, let's face it, is a lot like throwing a pity party for yourself, and must be done alongside a stiff glass of booze.

Then there's that little thing called to debt-to-income. And every representative you speak to is going to have a different interpretation of what your living expenses really mean for you and program qualification.

Then, the bank loses your paperwork.

Twice. (This is a requirement of any representative in the Loss Mitigation Department. Do not be fooled. Their reviews depend on losing your paperwork at least twice throughout the transaction. Three or four times if you hook up with a real overachiever.)

Oh but dear Mr. and Mrs. Frustrated Seller, there is help for you. The new HAFA program has been revamped and let me tell you - my clients are seriously doing a happy dance for HAFA. (Like, all of them!) No more putting both of your ankles in and shaking them about. This is . . . well . . . kind of . . .

GULP  . . .


For those of you who don't know HAFA stands for Home Affordable Foreclosure Alternative, a government-sponsored program for individuals looking to short sell their home. In short, HAFA will pay homeowners $3,000 in relocation expenses for the short sale of their home. Further, the program requires lenders to waive deficiency rights. That basically means they cannot pursue you for anything after the sale of your home (although tax consequences should always be discussed with a tax professional).


These options are available for consumers in the following situations:

  • do not qualify for a loan modification through the Making Homes Affordable Program
  • do not successfully complete the trial period of the loan modification they achieved
  • miss at least two consecutive payments during their modification period
  • request a short sale or deed-in-lieu of foreclosure

Here are more specifics on eligibility requirements. (No dancing required.)


For more information about the HAFA Program or options for distressed homeowners, contact me!




Posted by

Jessica L. Steele

Welcome Home Realty/Valley of the Sun Team



Mike Linkenauger
Jacksonville, FL
Short Sale Specialist Network

HAFA has been a big bummer, but we expected alot of this.  Hopefully the new guidelines will help some.  As one of the new HAFA program guidelines that went into effect Feb. 1st, 2011, the 31% debt to income ratio does NOT need to be proven by the borrower.  In other words, it is like a "stated income short sale" to some degree!  Pretty good news for the program.  We have a great discussion and info group for the HAFA short sale program, and we are releasing an updated HAFA guide next week as well - www.theshortsaleguide.com/group/hafaprogram

Mar 02, 2011 05:10 PM