HAFA was introduced to simplify and streamline the short sale process. HAFA accomplishes this by utilizing standardized forms and by setting forth strict timeframes that both the servicer and borrower must adhere to.
 
The following is a 6-step summary of this streamlined process:

1. Servicers must consider HAMP eligible borrower for HAFA within 30 days of the date the borrower:

• Does not qualify for trial period plan

• Does not successfully complete trial period plan

• Is delinquent on HAMP modification by missing at least two consecutive payments

• Requests a short sale or Deed-in-Lieu

2. Servicer must proactively notify the borrower in writing of the availability of a short sale and deed-in-lieu

•Servicer allows borrower 14 days to contact them with interest in these options

•After this timeline servicer has no further obligation to extend the HAFA offer

3. Servicer issues Short Sale Agreement (SSA) along with Request for Approval of Short Sale (RASS) Document

• The servicer will send documents either proactively or at the request of the borrower

4. Once SSA is issued the borrower must sign and return SSA within 14 days of its effective date, along with real estate broker listing agreement and information regarding subordinate liens

• Borrower is allowed 120 calendar days from SSA effective date to obtain a contract

• Can be extended up to one year with servicer approval

5. Within three days following the receipt of an executed purchase offer, the borrower (or listing broker) must submit a completed RASS to the servicer

6. Servicers have 10 days to accept or deny a short sale request (RASS)