 Home Affordable Foreclosure Alternatives HAFA Short Sale Program Receive up to $3,000 in relocation costs when you short sale your home through the HAFA program. What is HAFA?It is a federal government program designed to help homeowners who: Are unable to afford their first mortgage payment Want to avoid foreclosure, and Have exhausted all modification attempts and continuing to own the property is not an option The program is available to all eligible homeowners. To be eligible, a homeowner must meet all of the following criteria: 1. Borrower has exhausted all modification options and/or 2. Has decided to pursue a short sale or deed in lieu of foreclosure 3. The property is the borrowers' principal residence (exception is made when the borrower has to relocate over 100 miles) 4. The first lien mortgage originated on or before 01/01/09 5. The mortgage is at least 60 days delinquent or is reasonably likely 6. The unpaid principal balance is less than $729,750 for 1-unit properties. Higher balances are available for 2-4 unit properties. No properties with more than 4 units allowed. 7. The monthly mortgage payment (PITI) exceeds 31% of the borrower's gross monthly income An additional benefit to the seller is the waived deficiency. When homeowner short sales his/her property thought the HAFA program, any deficiencies of the first lien will be waived. This means that the bank cannot pursue the borrower for any losses it may incur.
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