Who is Eligible for HAFA?
Most homeowners facing financial hardship are eligible. 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. However, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days if the borrower has met one or more of the following criteria:
For a loan to qualify, it must meet the following criteria:
How to Apply for HAFA
Homeowners interested in utilizing foreclosure alternatives under HAFA are instructed to contact their lender if they meet the eligibility requirements and inform them of their desire to participate. Homeowners unsure of whether or not they meet eligibility requirements should contact a CDPE near them.
After April 5, 2010 ? when HAFA activates ? participating lenders should preemptively contact their eligible borrowers within 30 days, either after they meet eligibility requirements or after April 5, 2010. Eligible homeowners will be sent, either preemptively or by request, a Short Sale Agreement that will outline the terms and conditions of a short sale specific to the homeowner.
Homeowners and real estate professionals are encouraged to examine the following documents (updated March 26, 2010) important to the short sale process:
Homeowners and real estate professionals interested in seeking solutions through a deed-in-lieu of foreclosure should examine the following HAFA form (updated March 26, 2010):
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