Most homeowners facing financial hardship are eligible for a HAFA. As a rule, if a homeowner is eligible for HAMP but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. Your real estate agent can request a HAFA short sale on your behalf.

For a loan to qualify, it must meet the following criteria:

• The property is the borrower’s principal residence

• The mortgage loan is a first lien mortgage originated on or before January 1, 2009

• The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac

• The mortgage is delinquent or default is reasonably foreseeable

• The current unpaid principal balance is equal to or less than $729,750

• The borrower’s total monthly mortgage payment exceeds 31 percent of the borrower’s gross income (as defined in HAMP Supplemental Directive 09-01)

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