HAFA, or the Home Affordable Foreclosure Alternatives Program is a government sponsored

initiative to aid eligible homeowners by pre-approving short sales before listing and releasing them from future liability of mortgage debt.

A Few Quick Facts:

1. Launched April 5, 2010

2. Pertains to 1st lien Non-GSE mortgages

• Loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify

under HAFA in it’s current state. These organizations may have plans to release their own versions of HAFA

3. Utilizes borrower’s financial information through the Home Affordable

Modification Program (HAMP) waterfall process

4. Provides financial incentives for borrowers, servicers and investors

5. Uses standardized processes, documents and timeframes to quickly and effectively implement a short sale or deed-in-lieu

6. Investors waive the right to seek deficiency judgments, absolving the borrower of all mortgage debt

7. Caps the claims of subordinate lien holders, minimizing the largest stumbling block to the short sale process

Source: Making Home Affordable. Supplemental Directive 09-09 Revised (2010):