The Bothell Short Sale Blog

Lenders and loan servicers participating in HAFA must sign a servicer participation agreement with Fannie Mae — the program administrator and financial agent representing the United States in this case &mdash to participate in HAMP by October 3, 2010 (the previous deadline was December 31, 2009. This was updated March 26, 2010) Therefore, most lenders [...]

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 can contact us here. After April 5, 2010 — when HAFA activates — participating lenders should preemptively [...]

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 [...]

HAFA was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways: Compliments HAMP by providing viable alternatives for borrowers who are HAMP-eligible• Uses standard processes, documents and timeframes• Provides financial incentives to borrowers, servicers and investors • Requires that borrowers be fully released from future liability for the [...]

The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales or deeds-in-lieu of foreclosure. HAFA was announced on November 30, 2009 in a HAMP Update titled Introducing the [...]