Changes to HAFA - Effective June 2012

Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

hafa updatesThe Home Affordable Foreclosure Alternatives Program (HAFA) is a government-sponsored program aimed to provide additional alternatives to foreclosure. Aside from loan modification (the government’s HAMP program) and underwater refinance (the government’s HARP program), the Treasury has also provided options for distressed borrowers through short sale and deed-in-lieu of foreclosure.

Just like a small child that grows and changes, this program has also changed quite a bit since its inception just two years ago. In March of this year, the Treasury set out additional guidelines for short sale and deed-in-lieu of foreclosure through the HAFA program. Note that these changes are not required to be put into play by the mortgage servicers/participants until June 1, 2012.

Check out or download this handy chart in order to learn more about how HAFA (once a baby, and now a toddler) is going to be changing in a few short months.


HAFA Updates


(photo credit)


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Michael Collins 04/19/2012 02:01 AM
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William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Thanks for the chart.


Apr 19, 2012 12:10 AM #1
Dan Hopper
Keller Williams Realty Downtown LLC - Denver, CO
Denver Realtor / Author / Advocate/Short Sale

Morning Melissa,  these HAFA changes are welcomed.  It is a shame that many of the lenders, in a 2nd position, will NOT participate in HAFA, thus making all this wasted.  Too often, I have had FNMA owned loans, only provide 6% towards the 2nd's lien balance, even if HAFA was involved.  That is poor... the 2nd can sell their notes to a collector at 8-12 cents on the dollar. 

Let's hope that their HAFA agreements include the proper amount to the 2nds.

Apr 19, 2012 12:16 AM #2
David Grbich
Realty One Group - - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Appreciate the update - thanks. Dave

Apr 19, 2012 12:18 AM #3
Michael Collins
*ROCK REALTY|Broker|Realtor|Real Estate|WI Short Sale Agent* - Janesville, WI
CDPE, SFR , Wisconsin Short Sale Specialist Realto

Thanks for the information Melissa. I hope you don't mind if I re-blog :)

Apr 19, 2012 02:00 AM #4
Linda Urbick
RealtyOne Group - San Ramon, CA
Selling San Ramon Valley - 925-786-5132

Melissa - thank you for the handy reference. I appreciate all the short sale information you provide

Apr 19, 2012 09:57 AM #5
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I think you meant to tweak the chart about the 31% ratio. That was eliminated for regular HAFA short sales last year. In many HAFA short sales the payments exceed 31% anyway. I think it's missing a word.

But the $8500 to junior lenders woo-hoo!!! Very happy about THAT! Also, it would seem that impending foreclosure doom has been removed so borrowers can now stay current.

Apr 20, 2012 12:50 AM #6
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I just read the supplemental. It appears that if the homeowner no longer occupies the property at the time of the application for HAFA, the homeowner will not receive the $3,000 incentive. It also says the homeowner doesn't have to be delinquent and they can stay current on the loan, under Section 7.4, which is very oddly worded. By eliminating the $3,000, there is no reason to do a HAFA in California for a non-owner occupant.

Apr 20, 2012 01:05 AM #7
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Elizabeth: Clarified, yes I was referring to 7.4 (which is definitely oddly worded).

Apr 20, 2012 08:14 AM #8
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Excellent summary of how the HAFA program has changed Melissa. It is too bad more people don't qualify.

Apr 22, 2012 09:41 PM #9
Daniel J. Brudnok, REALTOR
Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA


Change is good....especially since the reason for the program is so important.

Apr 23, 2012 12:08 AM #10
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Melissa Zavala

Broker, Escondido Real Estate, San Diego County
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